Full text of "Program budget. City of Boston and County of Suffolk"

See other formats

MU
3 9999 40104 154 7

GOVDOC

HJ9013
B/E

2000
Cae

City of Boston

Operating Budget Fiscal Year 2000
Capital Plan Fiscal Years 2000-2004

Thomas M. Menino, Mayor

Recommended Budget ¢ Volume |

[ BOSTON PUBLIC LIBRARY]
| GOVERNMENT DOCUMENTS DEPARTMENT
__RECEIVED

| AUG 9 1999

City of Boston

Thomas M. Menino, Mayor

Operating Budget Fiscal Year 2000
Capital Plan Fiscal Years 2000-2004

Volume I - Overview of the Budget

—<alir

en tor
oat na mary ayeah.
ant

Thomas M. Menino, Mayor

Dennis A. DiMarzio, Chief Operating Officer

Edward J. Collins, Jr., Chief Financial Officer

Office of Budget Management
Lisa Signori, Acting Director

Karen Ahern Connor, Deputy Director, Operating Budget

Roger McCarthy, Deputy Director, Capital Planning

Operating Budget and Capital Planning Staff

Penny Berrier
Carol Brait
Robinson Butterworth
Lily Cai
Darrell Crockett
Patricia DeMarco
Sheila English
Barry Fadden
Lynda Fraley
John Hanlon
Robert Howard
Geoffrey Hunt
James Kennedy
Kristen Morris
Michael Prus
Marianne Regan
Anthony Reppucci
Victoria Tamas
Mirta Velez
James Williamson
Franklin Wong

Systems Administrator
Gerard Rufo

Central Office Staff
Deborah DeLeo
Renee Fontes

Lilianna Guzman
Jacquelyn Murphy

veolO gniisiegO teinld ae A ainnet

901110 Isionenis leind ,.yb ,enitiod .|. biswhbs

ihamedaneM toohua ro on t9
tolsed pnidoA Hongi2 seid

fopbus gaitmeqO soloed yiuqe® senne) menA neiGm

gninnars tstiqad oloeiC yiuged ,yitasom Isgar

e¥< tale pa! AT oi4 tpi gar br ons Were pal OAS

eined, yans't
Hatt? lows (3
drrowislivG soenicoA
lat) wil we.
Hoyoa 0 HaisG
careMed sisirtsS
G1) 3 stiana : =
fehbos? yned -
yelard ubdny
nolish adol
bigwoh fiedeh
inu yariioad
ybenneW semsl if
gitioM neteliy
2u°9 lpatoiM =
nape sarsiia .
Jaouqyer sabre an
4 enmsT alto 7 .
"

soley pend
ib. F moemsilliy 2
| pnow nila | 3 ,

Table of Contents
Volume I - Overview of the Budget

Letter of Transmittal: Thomas M. Menino, Mayor
Executive Summary

Summary Budget

City Council Orders

Revenue Estimates and Analysis

Innovations in Education

FYOO Budget and Performance Goals Process
Financial Management of the City

Capital Planning

Statutes and Ordinances Governing Boston’s Operating and Capital Budgets
Boston’s People and Economy

Budget Organization and Glossary of Terms

103

107

115

Wes

t3/

143

og . ete ait

i 7

eae oD 4 sldsi

jogbud orl} to woivrev0 - [ sriuloV

bee

i ©

~~ 6

078M one Mi earieT ‘laiiiinensiT lo otal
: flaininie svitieexs

Y sy bod yume

IE : eh etabrO lisatoD YD”
>

: _

ee ary LA bus eonclizd sumevest

‘
=e

if soleus of a on
ho! aesuord teed pa bia tober OY aq
tor 7 (210 ado mnemnogidonh inane

ae ma
én $5 gical Late

rioghull istiqe® bow griimoqO e'nood gnimevoD yscanaitO bas estas?
ane

GOVERNMENT FINANCE OFFICERS ASSOCIATION
Distinguished
Budget Presentation
Award

PRESENTED TO
City of Boston,

Massachusetts

For the Fiscal Year Beginning
July 1, 1998

fe Mri, Siffin Ee

Executive Director

President

Digitized by the Internet Archive
in 2023 with funding from
Boston Public Library

https://archive.org/details/programbudgetcit2000bost

Technical Note

The City of Boston combined FY00 Operating Budget and FY00-FY04 Capital Plan was published
electronically using Corel Ventura 8.0, a professional page layout and document composition system.
Graphics were generated using Lotus Freelance Graphics. Hyperion Pillar 4.0, and Microsoft Access 97
were used for data management and analysis.

All production was done within the Office of Budget Management. Document production assistance was
provided by the City of Boston Graphic Arts Department. Technical development and support was
provided by MicroData Corp.

sioV lasiniioo T

3 GOW banidios noieoft io wid od T
2 0.48 gudeaV bow2 griev ytlesmnonaals
itm sonalsorl evict] gairy foie snsg 19 roiriqucid

o ,. ) | a a a Mavlens bet tiasegsci web wl i-ou new

ply ane remebox iasmiyeot Seibert rogbure fo 210 od nidiw sob enw not bong ILA
Pane THCNEUP aa slate deoormaqe’ anh siriqni) adwod Yo yiiD ot vd bobiveng
«p09 pao: aM vi habiveasg

CITY OF BOSTON * MASSACHUSETTS

OFFICE OF THE MAYOR
THOMAS M. MENINO

April 13, 1999
TO THE CITY COUNCIL

Dear Councilors:

I transmit herewith my Recommended Budget for Fiscal Year 2000 for the City of Boston and County of
Suffolk. The Recommended Operating Budget totaling $1.6 billion is 5.3 percent greater than the Fiscal
Year 1999 Adopted Budget and would represent the City’s 15th balanced budget in a row.

We operate in prosperous times, and the health of Boston’s economy is strong. In spite of minimal growth
in state aid allocated to Boston in the Governor’s Fiscal Year 2000 Budget, Boston’s robust economy
allows the City to meet its basic needs.

This budget continues my commitment to the two priorities at the top of the City’s agenda, education and
the quality of life in Boston’s neighborhoods.

In the Fiscal Year 2000 Operating Budget, 38 percent of the City’s new revenue has been allocated to
education. This will keep the City on course to attain additional improvements in school performance and
student achievement envisioned in our five-year plan of reform, “Focus on Children.” The Five Year
Capital Plan puts the City on a path to start five new schools. It authorizes a design and programming
study for a new K-8 school in Orchard Park. It also authorizes a school siting study for four additional
schools in Boston. Outside the classroom, the City provides additional resources to expand after-school
learning opportunities, academic support, recreation, arts and cultural activities.

The Fiscal Year 2000 Operating Budget and Five Year Capital Plan also make significant new investments
in residential areas of the City. This year’s Five Year Capital Plan launches “Pave the Way 2000,” a new
two year Capital program of street resurfacing and sidewalk repairs throughout Boston. I continue to direct
resources towards improvement and maintenance of parks, libraries, schools, community centers, police
and fire stations, and neighborhood business districts. With your approval, the City will also take an
unprecedented step to create more affordable housing by earmarking proceeds from the sale of the old
Berkley Street police headquarters for housing initiatives.

This budget is the result of a review of existing expenditures and new program needs and provides the best
allocation of the City’s available resources. I look forward to working with you during this process, and I
respectfully request your favorable action on the Fiscal Year 2000 Operating Budget and the Five Year
Capital Plan for FY00 to FY04.

Sincerely,

Thomas M. Menino
Mayor of Boston

BOSTON CITY HALL ¢ ONE CITY HALL PLAZA ¢ BOSTON ¢ MASSACHUSETTS 02201 © 617/635-4000
© So

co Printed on recycled paper

éTTI@JHOAZZAM + VitIT208 FO TET>

IOV 14 ZHY AO JONI bn
OWIVEM .M CAMOHT =.
cag Ss
Ser El
SVU YTS SHIT OT
aoliowe? wed
lo vitwoD bas no720d To ¥1)'D ort wl COOL mSY law Tod ghey fl bsbasa yo cuivened thong 1
ao°F1 sil) nad wlan Jasored 6.2 et naillid 0.12 gaan MgteS gaitandD bstamnmoasA sdT Motes |
WO € ai Ssabuc asied mel e'yiiD oni Jaseeuien Divow bre teabyti CalqobA oe t wet

Aiaim Yo alige al .gaowe A ymonoe 2° c0nO”d Yo Misod si ; ada) 200% a av ‘svaqo aW
yesodurs fedor 2’ hood Joyhudl OOOS wa9Y IsoelT e“romevow on! ai sorrod 01 Salecolle bis a

bet & aur IBSet oF aD ot) ewollm

has solisaubs sbavgs 2' yD 20 Io qo! sd 16 280hinig ows sat of tnsquimmos ym zoualnos Agha ge
¢boodioddgims 2 nolod tt sti Yo yieapae

; ih Dats 4 used znd syuavvs; Won Lda 401 Wo jaso1eg SE soxbud gavisioq® OOO wey Ie: atiae
bas sonsarwltieg londss al einamovorgm! Isaowibba cints 0) sz109 nO YI om (acd Litw tat -onite bs
me’ svFiodT “.qoabiidD no 20907 * sw1s3 lo os esy-svN wio ol Honqiivas lasiney sidoe sasha. :
gdinwnergows bas agiesxb a exxtiodura jl loots wor ovil nade oF dieq 2 mo yt ont sg mei lame “7
ianoulbds wo! 1? vbute goltie foodse eatinoitws ole 1 ctw t toedarO mi footie 8-4 won
low ise-taha beats 6 everest laovitihbs rabivows YHO sd) moons ab oblenrO agizo8 pt 0G oe
260VUs« fetuiliro One dw NOteeTIs) Od que Vimshsle AS TOGO Bama
| ae

tasmesvel won iasotingle salem oss mei latiqe) wef svf baa jaghuG gniersqO 0008 mee te ‘ |
won s ” OOOS veW sil ove” esdocusl oe(4 laiqe> wet svi 2 usy etl .9O od) to cae .
iseih) o7 aeaiinon 1 aad modgooul risqe Alewobie Ona galoalwest ewe 10 mexgorg tshigua
soley 273Ise Winumuos 2loods: .2cinaidi| whe 10 nonanstntam Sane InSMIvO TGA ebmwo# eK
oe sles oalg Uhw Yi att lsvorgos woy (iW anmruuth zesaleud Goomoddgion has enolate 3
bio 2 lo alse sit promt sbess07g gnbheares vd galenod sidatnotle som siesr9 of ga obs
avtaiinl ynitvod wi Matwypbesd sole

ieod sat zabivorgy bas 2been aun wou ban 2mutiimegz> wilelics lo waive # lo igesT Sd
bas 2es201g ait) paw voy dit gabhow .o7 buswil Ado! | iptinnephbnmcsesico}.
wo svi od? bax Jogbua gauwreqO 0008 we Isoeit od ao noliag aldmrovel %

a
& pce

meee SEL cts @
= _— ay A Fr | 2 B-

=e = Fis

pes
meewana|

Executive Summary

INTRODUCTION
FYOO Sources of Increased Revenue
As we look to the future, the 21" Century presents

opportunities as well as challenges for the City of Millions of Dollars
Boston. The Fiscal Year 2000 (FY00) Recommended S00 ee
Operating Budget and Five Year Capital Plan provide

the blueprint necessary to continue Boston's prog- $50 —
ress in recent years. The keys to that continued suc-

cess are quality education, vibrant neighborhoods, $40

and a strong economy.

$30 — —_—_———
The Recommended Operating Budget for FY00 total-

ing $1.6 billion is 5.3 percent or $81.3 million greater as EL CRE IT aA
than the FY99 Adopted Budget. It represents the 15"
consecutive balanced budget for the City of Boston.

$10 = eee ti
For the second year in a row, the City’s Five Year ‘ i

Capital Plan has been consolidated with the Operat- $0

ing Budget to present a complete picture of the City’s nee eee

resources and strategic financial plan. This year’s Net Levy State Aid Excises
Capital Plan, which totals $1.4 billion, includes $70.4 Fines Lic. & Perm. Other
million in new FY00 authorizations for 83 projects

across every neighborhood of the City. Figure 1

SUMMARY OF ADDITIONAL RESOURCES

A 5.3 percent increase for the FY00 Recommended

Operating Budget represents $81.3 million in addi- FY00 Allocation of Increased Revenue
tional funds. More than 50 percent of the revenue in-

crease comes from the City’s largest revenue source, Millions of Dollars
the property tax levy. This year, the City of Boston oan Oe ae on]
saw a negligible increase (1.4 percent) in state aid $35 z n 2 :
allocated to Boston in the Governor’s FY00 budget.
With state aid and net property tax levy making up $30.7 7 r
approximately 80 percent of the City’s revenues, the $25 — i a
City was challenged to meet its needs within avail-
$20 ,

able resources. (Figure 1).

The available revenue growth provides the basis for $15 — wa RNIad?
planning FY00 appropriations and fixed costs to $10 i ie
maintain a balanced budget. The Recommended

Budget allocates 38 percent or $30.9 million of the $5 S
revenue increase to Schools. Other categories of ex- $0 aM

penditures increase as follows: city departments $31 7 iad
million or 4.8 percent; Public Health Commission ($5) :

$4 6 milli 871 anid fixed costs $17°7 mi Schools Fixed Costs Public Health

24.6 million or 8.7 percent; and fixed costs $17.7 mil- City Depts Public Safety Other
lion or 6.3 percent. (Figure 2).

A detailed discussion of the City’s revenues and ex-
penditures can be found in the Summary Budget
chapter.

Figure 2

FACES OF THE FUTURE

The best indicator of a City’s future strength is its
children. Quality schools, development opportunities
for our youth, and the health of the City’s residents
are pivotal to the future of Boston’s community.

Quality Education

Education continues to top the City’s agenda, with 38
percent of the Recommended Budget increase being
invested in our schools. FY00’s investment continues
the City’s commitment to “Focus on Children,” a five-
year plan of reform. The City’s reform efforts have
heightened the awareness of performance at our Ci-
ty’s schools and have established goals for the future.

This year’s Five Year Capital Plan calls for the siting of
five new schools. The Mayor’s 1999 State of the City
address stressed the importance of bringing neighbor-
hoods together around schools. The Five Year Capital
Plan includes a new authorization for the design and
programming study for a new K-8 school in Orchard
Park, as well as school siting for four additional
schools.

In the FY00 Recommended Budget, funding is dedi-
cated to the implementation of a Comprehensive Lit-
eracy and Math Initiative to provide all students with
the tools necessary to meet the more rigorous aca-
demic standards established by the Boston School
Committee. Other initiatives funded in the FY00 Rec-
ommended Budget include an increased bus monitor
service focused on the City’s youngest student popula-
tion; enhanced arts programs; Grade 2 class size re-
duction; the purchase of replacement textbooks for
Social Sciences in Grades 9 and 10; and an increase
for Advanced Work Classes.

Boston was the first major urban public school district
to have every school connected to the Internet and as
such has been recognized as a true leader for its
school technology initiative. The City continues to in-
vest in school technology through both the Capital
Plan and the Operating Budget, including an addi-
tional $13.3 million in authorization for technology
and wiring upgrades. By the end of FY00, more than
30 schools will have every classroom connected to the
Internet and the student to computer ratio will be re-
duced to 8:1.

A full review of goals, accomplishments, and finances
of the Boston Public Schools can be found in the Edu-
cation Chapter.

In last year’s budget, the City established the “Boston
2:00 to 6:00” Initiative to provide children with new

learning opportunities after school. In its first year,
the program has proven to be an important resource
for children and families in Boston. The FY00 Recom-
mended Budget expands “Boston 2:00 to 6:00” in two
ways: 1) by fully funding the cost to keep 20 addi-
tional school-based sites open, and 2) by piloting a
grant program of $250,000 that will leverage new re-
sources and fund model after-school programs. The
second year of the “Boston 2:00 to 6:00” initiative in
FY(00 will focus on reinforcing the school curriculum
and quality control.

BOSTON — ONE OF THE MOST LIVABLE CITIES
IN AMERICA

As the 20° Century draws to a close, it is clear that
Boston’s neighborhoods have made tremendous
strides. The FY00 Budget and Capital Plan provide
continued funding for the tools necessary to enhance
the City’s neighborhoods for all residents.

Housing

A clear sign of the stability of Boston neighborhoods is
the strength of the City’s housing market. The strong
demand for housing in Boston, however, challenges
the City to place additional emphasis on increasing
the supply.

“Housing 2000,” one of the City’s new FY00 initiatives,
will substantially increase the budget for improving
housing by allocating to it the proceeds from the sale
of the old Berkley Street police headquarters. “Hous-
ing 2000” will commit $10 million of the City’s re-
sources to the production of housing. Combining City
funds with federal and state housing resources, Bos-
ton will double the annual production of housing
units from 1,000 to 2,000.

Neighborhood Development

This year’s Five Year Capital Plan launches “Pave the
Way 2000,” a new, extraordinary two-year program of
street resurfacing and sidewalk repairs that will en-
hance every neighborhood of the City. Through this
program, the City will invest an additional $7.5 million
per year for the next two fiscal years to improve the
condition of neighborhood streets. This represents an
investment that is above and beyond the annual in-
vestment of approximately $5.7 million for routine
street and sidewalk repairs.

To improve the quality of Boston’s neighborhoods, an
additional $100,000 of increased funding to be used
for vacant lot cleanup will allow the City to be proac-

tive rather than reactive to citizen complaints. The
FY00 Recommended Budget also increases the staff-
ing for Code Enforcement to further protect the liv-
ability of Boston’s neighborhoods.

The Department of Neighborhood Developments
(DND) budget includes seed money for additional

housing initiatives at $50,000 each — a Boston Travel-

ing Home Center and a “Homebuyer Beware” Cam-
paign. Both initiatives are designed to disseminate

quality information about available programs and the

housing market to current and potential new City
residents.

DND’s budget also provides $125,000 for this year’s
“Boston: It's All Right Here” campaign. The focus of
the FY00 effort will be to promote greater awareness

of Boston's “streetcar suburb” neighborhoods, includ-

ing sections of Dorchester, Mattapan, Hyde Park,
Roslindale, and West Roxbury.

The Inspectional Services Department (ISD) auto-
mation project, funded through the City’s Capital

Plan, will automate every function within the depart-

ment, in particular the building permit and inspec-
tion processes. ISD is a key City department
involved with housing. ISD issues 35,000 building

permits and conducts over 170,000 inspections annu-

ally, most of which is currently done using paper-
based systems. This investment will go a long way to
help streamline these processes resulting in better
customer service.

Parks & Recreation

An integral part of neighborhood vitality is the qual-
ity of the parks and recreation system available to
the community. The FY00 Budget and Five Year
Capital Plan continues to enhance the City’s recrea-
tion programs as well as the City’s parks and fields.

In FY00, the Parks & Recreation Department will ex-

pand sports camps at East Boston and White Sta-
dium from 5 to 7 weeks; increase the number of
children served in tennis programs and in the Ja-
maica Pond Sailing program; and add new programs
for volleyball, track and field, as well as in-line skat-
ing and hockey in under-served neighborhoods.

During FY00, the Parks Department will refurbish 30
additional baseball diamonds with red clay, following

through on the Mayor’s commitment to upgrade all
ball fields within four years. In addition to improv-
ing the City’s baseball fields, this year’s Capital Plan
provides new authorizations for twenty-five new
park projects throughout the City.

For example, the city is requesting $3.5 million in
new authorization to significantly redevelop Chris-
topher Columbus (Waterfront) Park, located in
Boston's North End district. For several decades,
this park has served as the primary open space
recreation location along Boston’s waterfront. Al-
though a regional city park, the park is very impor-
tant to the North End and downtown residents.
Also included in this plan is a $1 million authoriza-
tion for the Children’s Wharf Boardwalk Enhance-
ment project, which will rebuild the harborwalk on
Fort Point Channel adjacent to the Children’s Mu-
seum. Both of these new projects will bring the
City closer to the realization of Boston’s “Harbor-
walk.”

During FY00, the City will also be involved in a col-
laborative effort with the town of Brookline, the
Commonwealth of Massachusetts, and the Federal
government to secure the necessary funding to
dredge the Muddy River thereby restoring the
natural beauty of the Emerald Necklace. A com-
plete list of these new parks projects can be found
in Volume III under the Parks Department’s Capi-
tal Budget.

The City continues to transform city buildings into
community assets. The Five Year Capital Plan in-
cludes new authorizations for investments at the
Nazzaro Community Center, and a second tennis
structure at a site to be determined. Capital ex-
penditures are also planned for many significant
Community Centers’ projects including: Black-
stone Community Center; Vine Street Community
Center; and Harborside Skate Park, the first out-
door skate park, in East Boston.

Public Safety

With crime in Boston falling to the lowest level in
30 years, the sense of security in the City’s neigh-
borhoods is markedly on the rise. Community po-
licing continues to prevent crime and contribute to
residents’ well-being. This year’s Five Year Capital
Plan includes a new authorization for the site as-
sessment and programming for the construction of
a new neighborhood police station in Charlestown.
In the South End, construction on the City’s Dis-
trict 4 Police Station is expected to begin by the
fall of 1999.

The FY00 Recommended Budget provides funding
for the annualized cost of sixty new police officers
to be hired in May 1999 to offset expected attrition.

Also included are new positions to staff the state of
the art crime lab at the new Police Headquarters.

The Fire Department maintains a complement of sup-
pression and prevention staff that balances the de-
cline in fires against the changing nature of
emergency responses. The FY00 Recommended
Budget funds two classes, totaling fifty new firefight-
ers to offset attrition. Funding is also provided to re-
place air bottles, continue the overhead door
replacement program at stations, and interior im-
provements at Fire Alarm.

PROMOTING HEALTH

The health of a City’s population is an important indi-
cator of a City’s success. Promoting the health of the
citizens of all ages is a task shared among different
City departments, the health care industry and health
advocates all striving to make Boston a leader in the
nation for health care.

The Boston Public Health Commission continues to
fulfill its mission to preserve, protect, and promote
the health of the people of Boston. Cancer Prevention
and Control, Childhood Development, Adolescent
Health, Domestic and Other Violence Prevention, En-
vironmental Health, AIDS, and Substance Abuse con-
tinue to be priorities for FY00. The Boston Public
Health Commission’s budget for FY00 is $57.5 million,
which is $4.6 million greater than the FY99 adopted
budget.

The FY00 budget funds initiatives critical to the Bos-
ton Public Health Commission’s mission including:

Childhood Development

“Improving Birth Outcomes” is a new program in the
FY00 budget ($100,000). In order to decrease infant
mortality rates in Boston, the program will promote
the importance of pre-conceptual care, as well as es-
tablish Boston FirstLink, a newborn screening and
community referral system. Boston FirstLink will
identify newborns and their families with conditions
that can contribute to poor health and development
and link them to the appropriate health care and fam-
ily support.

During FY00, the Family Health Van will be fully op-
erational. The Family Health Van will complement ef-
forts to improve and protect the health of Boston
residents by offering a range of public health services
on a mobile van that will travel to all neighborhoods
in the city. The Family Health Van will be a shining

4 Ee Xt o8 Cerumt Gi v -e Sou

example of a successful collaboration with cormmunity
health centers, hospitals and human service agencies.

Cancer Prevention and Control

This budget reflects a continued commitment to a
comprehensive plan for preventing, detecting and
treating cancer. Through its newly formed Office of
Cancer Prevention and Control, the Boston Public
Health Commission will implement additional cancer
awareness Campaigns during this fiscal year. Further-
more, the Mammography Van will be fully operational
in FY00.

Environmental Health

To address increasing instances of respiratory ill-
nesses in Boston, a new Office of Asthma Prevention
and Control has been funded through a reorganiza-
tion. This reorganization will help the Commission’s
capacity to analyze environmental-related disease
health indicators.

Domestic and Other Violence Prevention

Domestic Violence Prevention continues to be a focus
for the Boston Public Health Commission. The Com-
mission is in the process of developing a handgun con-
trol program that will target the gun industry for
producing dangerous products and educate residents
about preventing gun-related violence and injuries.

Substance Abuse

Substance abuse is one of the most frequent causes of
hospitalization among Boston residents, affecting all
population groups, including the most vulnerable in
the City. The City’s Five Year Capital plan funds a $1
million renovation of a building on Long Island to
house Marathon House, a valuable program targeted
to serve this vulnerable population.

BOSTON’S ECONOMY IN A SNAPSHOT

Economic trends for Boston continue to be positive.

The positive nature of the City’s economy is best char-
acterized by increasing employment, declining unem-
ployment rates, as well as a strong real estate market.

Last year, the financial markets expressed an in-
creased level of confidence in Boston’s fiscal health by
upgrading the City’s bond rating to the AA category.
The factors that contributed to this success are the
City’s dominant role in the New England Economy, the
City’s established track record of effective financial

mmary

management and the City’s continued conservative
debt management and capital planning.

Seaport District - An Economic Engine

The Boston Redevelopment Authority (BRA) re-
cently released the new Seaport Development Plan
which describes the development of the over 1,000
acre South Boston waterfront area for a balance of
interests. The Boston Convention and Exhibition
Center (BCEC) is the keystone of the Seaport devel-
opment, expected to attract thousands of new visi-
tors and millions of new dollars into Massachusetts
each year, and to serve as a catalyst for the develop-
ment of new hotels in the area. The Seaport District
will be a destination not just for workers, but also for
residents, and visitors. Areas have been identified
for new cultural facilities, parks, and gateways to
Boston Harbor and the Islands. Residential charac-
ter will be an essential ingredient in the Seaport Dis-
trict.

The need for the BCEC was thoroughly documented
prior to the state legislature enacting the Convention
Center Act in 1997. A further report in 1997, which
provided the analytic support for the 1997 Conven-
tion Center Act, further reinforced this conclusion.

The potential for positive economic impact is the pri-
mary rationale for public involvement in the BCEC
project. Convention and exhibition centers establish
destinations for visitors from outside the Common-
wealth who spend significant amounts of money dur-
ing shows and meetings. (Figure 3).

The direct economic returns in terms of spending
and jobs, go to hotels, airlines, retail stores, restau-
rants, entertainment establishments, taxicab compa-
nies and other related industries. The City and the
Commonwealth have an interest in promoting growth
and stability within these industries.

The BCEC is a $700 million investment — only the
“Big Dig” exceeds this project in the history of the
City of Boston. The City is financially responsible for
$157.8 million for site acquisition and preparation,
which will be carried out by the BRA. A fundamental
assumption by the City is that its current revenue
base will not be utilized to fund the BCEC. Results
to date show that BCEC supporting revenues com-
pare favorably with the estimates in the financial
plan submitted to City Council. The two largest sup-
porting revenue sources, hotel excise from new ho-
tels and the sale of hackney carriage licenses,
through the first three-quarters of FY99, exceeded
estimates for FY99.The state, through the Massachu-

setts Convention Center Authority (MCCA), is fi-
nancially responsible for the construction phase of
the project. A fuller overview of the BCEC project
and its financial implications can be found in the
Capital Planning chapter.

At this time, the site acquisition for the BCEC is
well underway. Around the beginning of FY00, the
site is expected to be fully acquired by the BRA.
Tenant relocation, demolition of existing buildings,
and the “hand-off” of the site to the MCCA will fol-
low the site acquisition in stages. The MCCA is
gearing up for the construction phase of the proj-
ect. An architect has been hired, and the process
of hiring a construction manager is underway. The
facility is expected to be open in 2003.

Summary of BCEC Economic Benefits

© 6,481 new jobs will be created throughout the
Commonwealth, with 5,942 of those jobs in
Greater Boston. An additional 4,253 indirect and
induced jobs will be created in the Common-
wealth, with 3,701 of those within Greater Boston.

© During the five-year design and construction pe-
riod, 3,570 construction jobs will be enhanced by
the construction of the BCEC.

© The hospitality industry is the primary beneficiary
of the economic benefits that conventions and ex-
hibitions bring to the Commonwealth.

@ The total annual statewide tax impact of the
BCEC is $45.4 million from which Boston will de-
rive 17 percent of the fiscal benefit.

Figure 3

MEETING THE CHALLENGES OF TODAY,
TOMORROW, AND THE 21" CENTURY

The City is proud of its contributions to improving
the quality of life and education, as well as the
strength of Boston’s economy. While the City is
proud of its accomplishments, it also recognizes
that the City’s history is one of continual change,
improvement and adaptation to the emerging
needs of Boston’s citizens and our economy.

Many of the City’s departments find themselves en-
cumbered with structures and systems aimed at
the demands of earlier times. In some instances,

services as diverse as education, recreation, and tech-
nology, are provided through overlapping efforts in
various City departments and programs. During the
budget process, Mayor Menino scrutinized how City
government resources could be better applied to im-

prove services. There was evidence during the budget

process that better coordination of some crosscutting
city programs may improve service delivery to the tax-
payers. In response to these overlapping efforts, dur-
ing FY00 the City will engage evaluation teams to
review service delivery systems across City depart-
ments.

Service areas discussed for further study include:

® Construction Management and Facility Repair;

@ Purchasing;

@ After School Programming;

Initiatives to Help Meet Next Century
Challenges

Key initiatives have been implemented that directly
improve the effectiveness and efficiency of City
services. The following is a partial list of initiatives
completed: 1) established the Taxpayer Referral and
Assistance Center during FY99 to provide one-stop as-
sessment and payment information to taxpayers; 2)
transferred the maintenance responsibility for large
high school athletic fields from the Schools Depart-
ment to the Parks Department to take advantage of
the Parks Department’s grounds maintenance exper-
tise; and 3) realigned all business development serv-
ices under one Business Services Division within the
Department of Neighborhood Development. In addi-
tion, Mayor Menino has appointed a special commit-
tee to review the operations of the Boston Fire
Department, focusing on issues of hiring practices, in-
juries, and deployment of firefighters.

Administrative departments are also working to help
meet the challenges of the next century. In the FY00
Recommended Budget, Mayor Menino is funding a
new Grants Administration Program in the Office of
Intergovernmental Relations to maximize the City’s
access to external funding from state, federal and pri-
vate sources by coordinating grant development and

administration. In addition, the new Boston Adminis-

trative Information System (BAIS) is well underway
with the first phases expected to be implemented at
the beginning of FY00. By replacing existing financial
and human resource applications, BAIS will signifi-
cantly improve coordination and efficiency citywide

by eliminating duplication of effort and enhancing the
quality of information available to decisionmakers.

The City is also working diligently to address the po-
tential problem known as the Year 2000 problem or
Y2K. The Y2K problem is rooted in the way dates are
recorded and computed in many computer systems.
System or application programs that use dates to per-
form calculations, comparisons, or sorting may gener-
ate incorrect results when working with years after
1999. The City began addressing the Y2K issue in
1995. The City’s Management and Information Serv-
ices (MIS) Department is responsible for coordinat-
ing the citywide Y2K compliance plan. All mission
critical and life-safety systems will be brought into
compliance by the beginning of FY00. As a safeguard,
the development of a comprehensive contingency
plan is underway to address the problems that may
arise due to non-compliant systems, embedded proc-
essors or external dependencies.

BUDGET DOCUMENT STRUCTURE

The Recommended Operating Budget for FY00 and
Five Year Capital Plan for FY00-04 is presented in
three volumes.

Volume | provides an overview of the City’s financial
position and policy direction.

Volumes I] and III, which are organized by cabinet,
present the budget detail for each department’s oper-
ating budget and capital authorization requests. Re-
fer to the chapter on Budget Organization and
Glossary for an illustration of the City’s Organization
chart.

The City’s Recommended Operating Budget is built at
the program level for each department, which is the
basis for budget planning. However, line iter detail is
only provided in this budget document at the depart-
ment level. Program line item detail is available upon
request.

In addition to line item expenditures, Volumes II and
III provide a mission statement, key objectives, as
well as past and promised performance levels for each
department. For those departments with capital proj-
ects, a project profile is provided for every capital
project, which includes authorization information as
well as planned spending levels.

Definitions of the terms used throughout the budget
document are presented in the glossary which can be
found in the chapter titled Budget Organization and
Glossary.

Summ

emma :
iaiaasc jaiwdaraessahe es

Sinz
So eae A

oat e

Summary Budget

Overview

The recommended FY00 budget of $1.605 billion rep-
resents an $81.3 million 5.3% increase over the FY99
budget. Included in the budget is $1.0 million in
non-recurring revenue and expenditures. This Sum-
mary Budget section lays out the FY00 recommended
budget and discusses trends in each category of the
summary budget table. A detailed look at personnel
trends as well as a review of major externally funded
services is also presented. Finally, a projection of the
major FY01 budget categories will provide an informa-
tive look ahead.

More than half of the City’s $81.8 million revenue in-
crease for FY00 comes from its largest revenue
source, the property tax levy. This revenue growth
provides the basis for planning FY00 appropriations
and fixed costs to maintain a balanced budget. Se-
lected FY00 budgeted revenues compare with FY99
budgeted revenues as follows: the property tax levy
(without the overlay reserve) increases $39.0 million
or 4.8%; excises increase $5.6 million or 8.2%; fines in-
crease $10.8 million or 22.0%; payments in lieu of
taxes decrease $5.8 million or 22.7%; licenses and per-
mits increase $6.1 million or 40.4%; state aid increases
$6.2 million or 1.4%. (Figure 1.)

On the expenditure side of the budget, total depart-
mental appropriations, including $1.0 million in non-
recurring expenditures, increase by $63.6 million or
5.1% and fixed costs increase by $17.7 million or 6.3%.
Selected budgeted FY00 departmental expenditures
compare with budgeted FY99 expenditures as follows:
city departments increase $31.0 million or 4.8%; the
Boston Public Health Commission increases $4.6 mil-
lion or 8.7%; county departments decrease $3.7 mil-
lion or 44.5%; the School Department increases $30.9
million or 5.7%. Budgeted FY00 fixed costs compare
with actual FY99 fixed costs as follows: pensions in-
crease $8.3 million or 6.9%; debt service increases
$7.8 million or 8.3%; state assessments increase $1.6
million or 2.5%. (Figure 2.)

Summary Bow id gi eo t

TEACHERS
PENSIONS
2.3%
NET
PROPERTY,
TAX LEVY STATE
51.4% AID
28.5%
IS FINES
3.7%
OTHER
EXCISES = REVENUE
4.6% 9.4%

FY00 Estimated Revenue

Numbers may not add to 100% due to rounding

Figure 1

PUBLIC
HEALTH

COMMISSION
OTHER 3.6% CITY

0.4% DEPARTMENTS
41.7%

SCHOOL
DEPARTMENT DEBT
35.8% SERVICE
0,
STATE Ie
PENSIONS ASSESSMENTS
8.0% 4.2%

FY00 Estimated Expenditures

Numbers may not add to 100% due to rounding

Figure 2

REVENUES
Property Tax Levy
Overlay Reserve
Excises
Fines
Interest on Investments
Payments In Lieu Of Taxes
Urban Redevelopment Chapter 121A
Misc. Department Revenue
Licenses and Permits
Penalties & Interest
Available Funds
State Aid
Teachers Pension Reimbursement

Total Recurrmg Revenue
Non-Recurring Revenue

Total Revenues

EXPENDITURES
City Departments
Public Health Commission
County
School Department
Reserve for Collective Bargainng

Total Appropriations
Pensions

Debt Service

State Assessments
Reserve

Total Fixed Costs

Total Expenditures

BUDGET S UMMARY
(Dollars in Millions)
FY97 FY98 FY99 FY00
Actual Actual Budget Budget
748.99 782.44 819.30 858.28
(38.03) (50.57) (42.71) (33.01)
62.15/ el eAW 68.80 74.42
48.96 46.29 49.07 59.88
16.76 16.71 15.30 18.00
18.20 (Rte We 05265 19.82
33.99 36.61 32.89 34.36
39.63 35.84 33.60 34.26
17.40 23.42 15.18 2 esl
8.83 9.55 9.15 10.20
9.20 9.20 9.49 11.64
380.21 414.74 451.04 457.19
34.86 A525 35.00 37.50
1.38115 1,446.22 Loo 2 eh 1,603.85
0.00 0.00 1.78 1.00
jy Seb eal Bs} 1,446.22 RO oso 2 1,604.85
581.66 603.10 638.66 669.63
60.89 66.68 52.84 57.47
8.08 8.69 8.43 4.68
475.61 507-17 543.06 573.94
11.00 0.69 0.95 1.82
LeisHe2 3 1,186.33 1,243.95 1,307.54
99.74 104.85 120.25 128.53
79.01 83.43 93.71 101.52
62.46 64.19 65.61 O7.20
0.00 0.00 0.00 0.00
241.21 252.46 279.57 297.30
1,378.45 1,438.79 e523 Z 1,604.85
2.10 7.43 0.00 0.00

Surplus (Deficit)

CITY OF BOS TON

Numbers may not add due to rounding

So mm: om Beer vy

Bau eG age a at

Revenue

Consistent revenue growth has allowed the City to
record 13consecutive operating budget surpluses
through FY98. Strong revenue growth in FY99 has
again put the City in a position to show another sur-
plus. (Figure 3.)

Millions of Dollars
M2 =>

$10 ——

89 '90 '91 '92 '93 '94 '95 96 ‘97 ‘98

Surpluses
FY89 - FY98

$8 —

$0 -

Figure 3

The FY00 recommended budget is balanced on the fol-
lowing revenue projections.

Property Tax Levy

A detailed discussion of the property tax levy is pro-
vided in the Revenue Estimates and Analysis chapter
of this volume. Below is a brief summary.

The property tax levy has been the City’s most de-
pendable source of major revenue growth during the
past fifteen years. The increases were steady and con-
sistent from FY85 to FY98, ranging from $28 million to
$41 million. However, because of the increasing prop-
erty tax levy base, the $29.9 million increase in FY85
represented an 8.9% increase, while the $39.0 million
increase in FY00 represents 4.8% growth. Property tax
levy growth is fundamental to the financial health of
the City since it provides over half of all City revenue
in FY00.

S? us mm? at @ y ¥ B

no more than a 2.5% increase over the prior year’s to-
tal levy with certain provisions for new growth and
construction. Finally, Proposition 2 1/2 provides for
local overrides of the levy limit and a local option to
exclude certain debt from the limit. The City of Bos-
ton, however, has not voted to either override the levy
limitations or to exclude any debt from the limit.

In each year since FY85, the City has increased its
levy by the allowable 2.5%.
the levy has also been positively impacted by taxable

During these same years,

new value. Taxable new value is budgeted at $18.5
million in FY00. The combined effect of the allowable
2.5% increase and the taxable new value is an average
annual levy increase from FY97 through FY99 of $33.3
million or 4.4%, and a projected increase in FY00 of
$39.0 million or 4.8%. The property tax levy totaled
$749.0 million in FY97, $782.4 million in FY98, and
$819.3 million in FY99. The property tax levy is esti-
mated at $858.3 million in FY00.

Property values in Boston have been rising steadily.
During FY98, the City conducted the sixth parcel-
specific revaluation that established values as of
January 1, 1997 at $33.8 billion, an increase of 9.0%
over the prior year. This was followed by a market in-
dexed assessment in FY99 that established values as
of January 1, 1998 and showed a 6.8% increase to
$36.1 billion. (Figure 4.)

Billions of Dollars
$50 = SSS ——

$40 —

$30 — rena: '
$20 . §
$10
$0 | a
'90 '91 '92 '93 '94 '95 '96 '97 '98 ‘99

Total Assessed Property Value
FY90 - FY99

Figure 4

Excises

The Commonwealth imposes an excise on the regis-
tration of motor vehicles, the proceeds of which are
received by the municipality of residence of the regis-

tered owner of each vehicle. The excise is a uniform
rate of $25 per $1,000 of vehicle valuation. Valuations
are determined by a statutory depreciation schedule
based on the manufacturer's list price and the year of
manufacture. As employment and consumer confi-
dence increased over the past few years, more people
returned to the market for new cars. Motor vehicle
excise revenue totaled $30.3 million in FY97 and $32.3
million in FY98. The City expects motor vehicle ex-
cise revenue to slightly exceed the midyear budget es-
timate of $33.5 million in FY99 and climb to $36.3
million in FY00.

The local room occupancy excise amounts to 4% of
the total amount of rent for each hotel or motel room
occupancy (in addition to the state excise). Boston’s
occupancy and average room rates are among the
highest in the country and the most recent data on
tourism continues to show an increasing number of
visitors coming to Boston. The growth of this revenue
source tends to mirror the economy. As the economy
has grown stronger over the last few years, room occu-
pancy excise receipts have increased steadily. Room
occupancy excise revenue totaled $19.7 million in
FY97 and $21.9 million in FY98. The City’s room
occupancy excise tax receipts are expected to exceed
the midyear budget estimate of $22.8 million in FY99
and are projected at $23.9 million in FY00.

Room occupancy excise revenue from the significant
number of new hotel rooms planned, already in con-
struction, or recently constructed is earmarked to pay
a significant portion of the City’s planned debt for the
new Boston Convention and Exhibition Center.
Therefore, future growth in room occupancy excise in
the general fund depends strictly upon increases in
room rates and room occupancy in the 1997 base of
hotel rooms.

The excise on the sale of jet fuel is 5% of the sales
price, but not less than 5 cents per gallon. The City
actually collected the greatest amount from this new
excise in its first full year, FY87. One reason that the
jet fuel excise has tended not to increase is that with
jet fuel selling consistently below $1.00 per gallon, the
5 cents per gallon minimum tax has generally been
the operative rate. Another underlying factor that
limits jet fuel excise growth is the increased fuel effi-
ciency of commercial aircraft that use Logan airport.
Because fuel is such a major portion of their expendi-
tures, airlines have steadily improved the fuel effi-
ciency of their fleet. Since FY97, an increase in air
traffic has begun to cause an increase in the sale of
jet fuel. Jet-fuel excise revenue totaled $12.1 million
in FY97 and $12.6 million in FY98. The City expects

this revenue source to come in significantly above the
midyear projection of $12.2 million in FY99 and proj-
ects $13.9 million for FY00. (Figure 5.)

Millions of Dollars
$90 <=

$80 —— (ek he. 1 a ee

‘91 '92 "93 '94 '95 '96 '97 98 '99 ‘00

Excise Revenue
FY91 - FY00

$70

$60

$50

$40

$30

$20

$10

Figure 5

Fines

Over the last three years, the City has issued an aver-
age of 1.6 million parking tickets per year and has for
several years maintained a high rate of collection on
these tickets. The major factors contributing to the
City’s successful collection rate include non-renewal
of violators’ registrations and licenses by the Registry
of Motor Vehicles until penalties are paid, booting and
towing of vehicles, increased ability to get fine pay-
ments from rental agencies, and systematic collection
of fines for company cars. The City collected parking
fine revenue of $45.3 million in FY97 and $44.2 million
in FY98. Ticket issuance got off to a slow start in
FY99 due to delays in hiring of enforcement officers.
Therefore, parking fine revenue is expected to fall
short of the midyear budget estimate of $46.7 million
in FY99. The FY00 projection of $57.5 million is based
upon a planned return to historical levels of enforce-
ment and an increase in parking fines to adjust for in-
flation since the last fine increase in FY91. Even with
the increase in parking fines passed by City Council,
when adjusted for inflation, parking fines have fallen
8.0% since FY91. (Figure 6.)

Interest On Investments

In general, the City’s level of investment income is a
function of the level of prevailing short-term interest
rates and daily cash balances. Short-term interest

u di gy ev t

Millions of Dollars
ee

" Current Dollars J Constant Dollars

'91 92 93 '94 '95 '96 '97 '98 '99 ‘00
Parking Fine Revenue

Current vs. Constant Dollars
FY91 - FY00

Figure 6

rates and cash balances have been very stable for the
last 8 years. Interest income totaled $16.8 million in
FY97, $16.7 million in FY98, and is expected to exceed
the conservative midyear budget estimate of $15.3
million in FY99. Making the assumption that interest
rates will rise slightly this year and cash balances will
increase, the City projects interest income to be $18.0
million in FY00.

Payments In Lieu of Taxes

Payments in lieu of taxes are payments made by tax-
exempt institutions located in the City such as hospi-
tals, universities and cultural institutions as a volun-
tary contribution for the municipal services that the
City provides to them such as police, fire and snow re-
moval. The Massachusetts Port Authority will provide
over half of the payments in lieu of taxes revenue the
City expects in FY00. Growth in payments in lieu of
taxes comes from new payments in lieu of tax agree-
ments, contract escalations that adjust the payments
for inflation, or re-negotiation of a current contract.
Recently, several non-profit entities have entered into
new payments-in-lieu-of-taxes agreements with the
City including the Boston Housing Authority, Dana
Farber Cancer Institute, Suffolk University, and the
Boston Symphony Orchestra. Payments in lieu of
taxes totaled $18.2 million in FY97 and $19.5 million
in FY98. When a building is sold by a tax-exempt en-
tity to a taxable entity a “Section 2C” payment in lieu
of tax is made for the period between the sale date
and the date that the building goes on the tax rolls.

In FY99, a Section 2C payment of $5.4 million was

Summary Bou

made as a gap payment in lieu of tax on the sale of a
large office building sold by a tax exempt entity. The
City now expects this revenue source to come in close
to the $25.6 million midyear budget estimate for FY99
and has a budget of $19.8 million for FY00.

Urban Redevelopment Chapter 121A

The Chapter 121A legislation allows local govern-
ments to suspend the imposition of property taxes at
their normal levels in order to encourage redevelop-
ment. In recent years, the City used this mechanism
to encourage development of the FleetCenter and a
new Genzyme manufacturing plant in Allston. Chap-
ter 121A revenues are based on two separate sections
of the law as described below.

The Urban Redevelopment Corporation excise is a
municipal excise in-lieu-of-tax for which the Com-
monwealth acts as the collector and distributor. In
most cases, the formula for the 121A, Section 10 ex-
cise in-lieu-of-tax is $10 per $1,000 of the current fair
cash value plus 5% of current gross income. In FY97
and FY98, the City received Chapter 121A, Section 10
distributions of $25.8 million and $26.2 million. In
FY99 and FY00, Chapter 121A Section 10 revenues are
budgeted at $24.6 million and $25.4 million respec-
tively. The slight decline in this revenue source since
FY97 is somewhat misleading because several 121A
corporations have terminated their 121A special tax
status and have returned to regular property taxation
under Chapter 59. Thus, a downward trend in 121A
revenue is offset by increases in the property tax levy.

In addition to the Section 10 payments collected by
the Commonwealth described above, most 121A cor-
porations have individual Section 6A agreements with
the City that result in additional payments directly to
the City. These Section 6A agreements are complex
with actual amounts owed dependent on a formula
that varies widely among the 121As. The City col-
lected Section 6A payments of $8.2 million in FY97.
The $10.4 million collected in FY98 included a one-
time $2.0 million payment to settle an overdue ac-
count. The City expects FY99 Section 6A collections
to be in line with the midyear budget estimate of $8.3
million and has budgeted $9.0 million in FY00.

Miscellaneous Department Revenue

This category contains twenty-three larger accounts
and sixty-eight smaller accounts. The largest revenue
source in this revenue category is municipal medicaid
reimbursements for school health services. This fed-
eral reimbursement, administered by the state, began
in FY94. The City received $8.7 million in FY97 and

a ig¢ @ t 1t4

$8.2 million in FY98. Municipal medicaid reimburse-
ment is expected to easily exceed the conservative
midyear budget estimate of $8.0 million in FY99, and
is budgeted at $12.0 million in FY00. There are only
three other accounts in this revenue category that are
projected to exceed $2 million in FY00. Fire service
fees, which have been increasing based upon a recent
set of fee increases, are projected at $2.8 million.
Street and sidewalk occupancy fees are projected at
$3.0 million and prior year reimbursements are pro-
jected at $2.1 million. In FY00, Registry of Deeds fees
will no longer be City revenue as the budget for the
Suffolk County Registry of Deeds will be fully funded
by the Commonwealth of Massachusetts.

Licenses and Permits

The level of economic activity largely determines the
level of many types of permitting and licensing done
by City agencies. This category is dominated by build-
ing permit revenue, from which the City received $9.2
million and $14.8 million in FY97 and FY98 respec-
tively. Building permit revenue should easily exceed
the conservative midyear budget estimate of $6.0 mil-
lion in FY99. The City expects to receive $12.0 million
in building permit revenue in FY00.

The next highest license and permit revenue is from
alcoholic beverage licenses from which the City re-
ceived $2.2 million in FY97 and $2.3 million in FY98.
The City has a budget of $2.3 million for FY99 with a
slight increase to $2.4 million expected in FY00.

Street and sidewalk permits and cable television fran-
chise fees are the only other two accounts in this
category that exceed a million dollars in annual reve-
nue. The City has a budget of $1.3 million for street
and sidewalk permits in FY00 up from the $1.1 million
budgeted in FY99. These budgets follow actual reve-
nue of $1.2 million in FY98 and $1.0 million in FY97.
Cable television franchise fees are budgeted at $2.5
million in both FY99 and FY00. These payments are
higher than the $1.8 million collected in FY97 and the
$1.9 million received in FY98 due to back payments
expected as a result of a court decision.

Penalties and Interest

Taxpayers are assessed both a penalty and interest for
late payments of property tax bills and motor vehicle
excise bills. The City collected $8.8 million and $9.6
million in such penalties and interest in FY97 and
FY98 respectively. Actual penalty and interest collec-
tions for FY99 should exceed the current midyear
budget estimate of $9.2 million. The City expects to

collect $10.2 million in penalty and interest revenue
in FY00.

Available Funds

Available funds are linked to a separate category of
expenditure appropriation, that is, appropriations
which are supported by immediately available special
fund transfers. Most of the City’s general fund budget
is raised and appropriated from the tax levy, which
means it is supported by the revenues that are esti-
mated to come in during the course of the fiscal year.
This includes the tax levy, excises, state aid and the
various other categories of revenues described above.
The only two significant available funds that the City
budgets each year are parking meter revenues to sup-
port the Transportation Department, and cemetery
trust monies which are used to support the City’s
maintenance of its public cemeteries. The City trans-
ferred $9.2 million from these two sources together in
both FY97 and FY98. The City expects to transfer $1.6
million from the Cemetery Trust Fund to the General
Fund in both FY99 and FY00. The City also plans to
transfer $7.9 million from the Parking Meter Fund to
the General Fund in FY99 and $10.0 million in FY00.
These monies were available at the beginning of FY99
and also will be available at the beginning of FY00.
Both of these special funds have fees collected during
the course of the year. By transferring less than what
was collected, the City can build up these special fund
and trust fund balances. Trust fund balances can also
benefit from the opportunity to invest in securities of-
fering a higher return than short-term fixed-income
investments.

Parking Beginning
Meter Year Funds
Fund Balance In

(5.807.367)
(4.374.590)
(3.774.090)
(3.753.990)
2.260.760
3.401.760
3.459.850
4.633.190

9.432.777

(8.000.000)
(9.000.000)
(9.000.000)
(3.500.000)
(7,000,000)
(8.500.000)
(8,500,000)

9.600.500
9.020.100
9.514.750
8.141.000
8.558.090
9.673.340

Cemetery Beginning Funds In
Trust Year Plus
Fund Balance Appreciation

5.770.289

5.436.046

5.325.462

1.465.757
1.307.492
1,210,144
1,183,825
2.304.270
2,701,115
1.996.137

(1.800.000)
(1.418.076)
(600.000)
(600,000)
(500,000)
(700.000)
(700,000)

6.519.431
8.323.701
10,324,816
11,620,953

dy dt ef

State Aid

A detailed discussion of state aid is provided in the
Revenue Estimates and Analysis chapter of this vol-
ume. Below is a brief summary.

Over the last eight years, the Commonwealth has been
successful in balancing its own budget. This now
gives the Commonwealth the capacity to support and
diversify the local revenue base, thereby reducing
over-reliance by municipalities on the property tax.
The primary forms of local aid distributions from the
state to municipal general revenues are Chapter 70
education aid, additional assistance and lottery. The
amount of these funds to be distributed each year to
an individual community is described on the “cherry
sheet” (a listing of a city or town’s local aid that is
printed on cherry-colored paper) along with other
relatively smaller Commonwealth programs such as li-
brary aid, school construction and transportation re-
imbursements, and highway funds.

Beginning with passage of the FY93 state budget, the
Commonwealth embarked upon a multi-year commit-
ment to increase and equalize funding for local edu-
cation in its local aid distributions. In general, state
local aid during the FY93-FY99 period has been less
favorable for Boston than the revenue sharing ar-
rangement during the FY82-FY89 period. To illus-
trate: the City’s total state aid between FY93 and FY99
increased by $143 million or 46%, while its total state
aid between FY83 and FY89 increased by $171 million
or 72%. The City’s FY00 state aid increase of $6.2 mil-
lion represents an 1.4% increase over FY99.

The current educational aid is delivered in tandem
with state-mandated costs for charter schools. Char-
ter schools are publicly funded schools administered
independently from local school committee and
teacher union rules and regulations and whose char-
ters are granted by the State Board of Education.
There are two kinds of charter schools, the Common-
wealth charter school and the Horace Mann charter
school. The former is a school outside the local public
school system and the latter is part or all of a school
in the public school system. In addition to the Board
of Education, the local school committee and local
bargaining agent must approve Horace Mann charter
schools. In addition, Horace Mann charter schools’
budgets remain part of the public schools budget.

Summa ey

outside of Boston. There are currently 1918 students
in Boston attending charter schools. The Governor's
proposed FY00 budget recommends removing the
limit on the number of charter schools which can be
opened statewide. Before FY99, all charter school tui-
tion was drawn directly from the City’s Chapter 70 aid.
This draw on the City’s education aid totaled $10.4
million in FY97 and $10.9 million in FY98. Under re-
cent amendments to the charter school law, the Com-
monwealth will pay a declining share of between 100%
and 0% over four years for new students and increases
in tuition. The Governor's proposed FY00 budget,
however, recommends cutting the reimbursement
from between 100% and 0% over four years to 50% for
one year. The City has budgeted $12.2 million to be
the net impact of the charter schools in FY99 after re-
ceiving a $3.0 million reimbursement from the Com-
monwealth. The City expects $16.7 million to be the
net impact in FY00 after a $1.5 million reimburse-
ment.

Education aid to cities, towns, and regional school
districts statewide is expected to be $2.573 billion in
FY99. The Governor’s budget for FY00 includes $2.713
billion of education aid, an increase of 5.5%. The City
received Chapter 70 education aid of $115.5 million in
FY97 and $143.9 million in FY98. Boston will receive
$178.2 million in FY99 and is expected to receive
$180.0 million in FY00, an increase of only 1.0%. FY00
is the last year of the statutorily established funding
schedule for education reform. There has yet to be
established a post-FY00 funding schedule. A vital
component in the City’s delivery of quality public edu-
cation in the near-term is strong financial support
from the Commonwealth.

Lottery aid for the City, as for most municipalities, has
grown steadily the last few years as a result of a state
decision to phase-out the Lottery cap and return all
lottery profits to the cities and towns. FY00 is the
fifth and final year of the state’s plan. The City’s lot-
tery aid was $41.1 million in FY97 and $49.6 million in
FY98. The City expects that FY99 lottery aid will ex-
ceed the budget estimate of $51.0 million due to a
supplemental lottery aid distribution of $5.2 million.
The City expects to receive $56.0 million in lottery aid
in FY00. The lottery formula distributes lottery aid in-
creases based inversely upon each municipality's rela-
tive per capita property wealth. The City receives a
smaller percentage in lottery aid than its share of the
state population, and dramatically less than the share
of lottery proceeds derived from sales in Boston. Nev-
ertheless, lottery has been an important source of
revenue growth, aiding the City’s efforts to sustain
adequate municipal services. During the last four

B op @ gi et 183

years, Boston’s lottery distribution has reflected both
lottery profit growth and the phasing out of the diver-
sion of lottery funds to state coffers. Beginning in
FY01, the City’s lottery distribution will reflect only
profit growth in the lottery.

Teachers’ Pension Reimbursement

Boston’s cherry sheet includes an item unique to the
City, the teachers’ pension reimbursement for pension
charges to the City. The pensions paid to retired
teachers in all other cities and towns in Massachu-
setts come directly from the Commonwealth via the
State-Teachers Retirement System. In a singular ar-
rangement mandated by general law, pensions paid to
retired Boston teachers are paid by the State-Boston
Retirement System, which charges the City of Boston
for this cost as part of its annual pension funding.

The City is reimbursed by the Commonwealth on the
cherry sheet. In short, the Boston teachers’ pension
payroll is administered locally, but, as with all other
teacher pensions in Massachusetts, is the financial re-
sponsibility of the Commonwealth. The teachers’ pen-
sion reimbursement totaled $34.9 million in FY97,
$35.3 million in FY98, and has already come in at
$37.3 million in FY99. The teachers’ pension reim-
bursement is estimated at $37.5 million in FY00.

Non-recurring Revenue

Included in the FY00 budget is $1.0 million in non-
recurring revenue to be transferred from the surplus
property disposition fund. The original source of
these funds is the proceeds from the sale of central
artery land to the Commonwealth for the central ar-
tery project. In maintaining its policy of not support-
ing recurring operating costs with non-recurring
revenue, the City is limiting this transfer to an
amount not greater than $1 million for the Risk Re-
tention Reserve.

Surplus
Property Beginning
Dis position Year Funds Funds
Fund Balance In Out

27,681 32,044,400 (12,015,950)

20,056,131 14,080,000 (1,764,844)
32,371,287 0

S2,97 0.207 193,700

32,564,987 1,296,561

33,861,548 46,968

33,908,516 0

33,908,516

oD dy g? ef t

Expenditures

Expenditures are broken down into two primary
groups: appropriations directly related to departmen-
tal services and fixed and mandated costs. FY00 ap-
propriations are further subdivided into five
categories:

City Departments, which includes all operating de-
partment appropriations, a risk retention reserve and
a set-aside for tax title and annual audit expenses;

Boston Public Health Commission, the City appropria-
tion for the quasi-independent authority and succes-
sor to the Department of Health and Hospitals;

County, which includes the City of Boston’s share of
the operating budget for the Suffolk County Sheriff
and the County share of Pensions and Annuities for
payments to retired County officials who were not
members of the contributory retirement system;

School Department, the City appropriation for the
Boston Public Schools;

Reserve for Collective Bargaining, an appropriation
for outstanding labor agreements in the School De-
partment.

City Departments

The combined appropriations for City Departments as
shown in the FY00 Summary Budget have increased
by 4.8% over the FY99 appropriations. Nearly 70% of
this category covers four appropriations: Police, Fire,
Public Works and Health Benefits. The Police Depart-
ment’s appropriation will increase by $9.1 million, or
4.7%; the Fire Department will increase by $1.8 mil-
lion, or 1.6%. (It should be noted that the Police De-
partment includes funding for the Boston Police
Patrolmen Association’s contractual increase as of
July 1, 1999. The department also has three collective
bargaining agreements that have been outstanding
since June 30, 1996; a collective bargaining reserve
for these agreements has been included as part of the
department’s appropriation.) Public Works will see
an increase of $4.2 million, or 7%. Health Benefits
will increase by about 5% over the FY99 appropriation

Appropriations can also be divided by cabinet, to bet-
ter reflect the overall policy priorities and trends by
service area. (Figure 7.)

Some of the highlights of FY99 — FY00 changes by
cabinet are as follows:

Mayor’s Office

The cabinet will see an increase of 6.4%. A significant
portion of that increase will go to Boston 2:00 to 6:00.

+ bm mia y

HOUSING & NEIGHBORHOOD
DEVELOPMENT
PUBLIC
SAFETY

0.4%
| y-~ NON-MAYORAL
24.5%

0.7%

MAYOR'S
OFFICE

0.7% EDUCATION

44.0%

BASIC eee
SERVICES :
10.4% ZI
HUMAN 7
SERVICES —
1.7% Wok
PUBLIC
HEALTH CHIEF he
4.4% OPERATING CHIEF ECONOMIC
OFFICER DEVELOPMENT OFFICER
7.6% 0.2%
ENVIRONMENTAL CHIEF FINANCIAL

SERVICES 3.0%

OFFICER 2.3%

FY00 Expenditures By Cabinet

Numbers may not add to 100% due to rounding

Figure 7

The office is working toward ensuring that all school-
aged children have the opportunity to participate in
affordable after school activities in their neighbor-
hoods. In addition to promoting City run programs,
the staff coordinates the use of city facilities by non-
profit and community based agencies for programs op-
erating between the hours of 2:00 PM and 6:00 PM. In
FY00, in order to help bridge the financial gap that
many non-profit agencies face when trying to develop
after-school programs, additional funding is being al-
located to allow the department to award small grants
to non-profit agencies. The Intergovernmental Rela-
tions appropriation includes funding for a new Grants
Administration program. The mission of this program
will be to maximize the City’s access to external fund-
ing from state, federal and private sources. It will co-
ordinate the City’s efforts in grant development and
administration to ensure that resources are being
used to address the Mayor’s priorities and strategic
goals.

Chief Operating Officer

The majority of the 4.6% net increase in this cabinet
relates to the City’s continued investment in technol-
ogy. The Management & Information Systems (MIS)
budget includes funding for additional staff as well as
for increased hardware and software needs. During
FY99 the City has been developing a new financial/hu-
man resource/payroll system (the BAIS project). The
rollout of the human resource/payroll system is sched-
uled for September of 1999. The MIS Department and
the Office of Human Resources have played a major
role in that development; the FY00 appropriations will
fund the continuation of that effort.

B we g a t 165

Chief Financial Officer

After excluding tax title funding from the FY99 appro-
priation, the percentage increase in this cabinet is
11.6%. A major portion of that increase is the result of
a change in the way the staff for the Boston Adminis-
trative Information System (BAIS) project is funded.
In FY99 the staff was funded through a capital
authorization; in FY00 the staff will be transferred to
the operating budget. The Assessing Department’s
appropriation includes continued funding for two
projects initiated in FY99 — the Computer Assisted
Mass Appraisal (CAMA) system upgrade and the
Property Data Recollection Plan. The CAMA upgrade
will improve the accessibility of information as well as
bring the system into the Year 2000. The recollection
process has begun and will be completed prior to the
FY01 revaluation. In addition to normal operations,
during FY00 most of the finance cabinet departments
will continue to be involved in the development of the
City’s new financial system (the BAIS project).

Public Safety

The FY00 budget for the Fire Department contains
funding for two classes of firefighters to replace em-
ployees lost through retirements. The budget also in-
cludes funding to replace all of the aging air masks in
the department. The Police Department’s appropria-
tion includes the annualized net cost of a class to be
added in May of FY99. The size of the May class along
with projected retirements will allow the department
to continue to provide an appropriate level of staffing
throughout FY00. The department will assess its
staffing needs at the end of FY00 to determine the
timing of future classes.

Economic Development

The major change in this cabinet is the transfer of the
Department of Neighborhood Development to the new
Housing and Neighborhood Development cabinet.

The departments remaining in this cabinet will see a
slight increase in funding to cover current operations.

Basic Services

After excluding the state funding included in the
FY99 Library appropriation, the request for this cabi-
net contains a net increase of 3%. The Property Man-
agement increase in FY00 will cover increased code
enforcement and dog officers to address some of the
concerns relating to trash disposal and dogs that have
been raised in the neighborhoods. The driving force
behind the Public Works increase is the trash collec-
tion and disposal contracts. The Parks Department
will increase its focus on park maintenance and rec-
reational programs. The Youth Fund increase will al-

S' cu! em tm fe & sy ¥ FB

low full funding of the summer youth employment
program as well as provide the resources needed to
strengthen and improve the operations of the pro-
gram.

Environmental Services

The majority of the $1.88 million increase relates to
initiatives funded in the Transportation Department.
The emphasis will continue to be on providing a level
of enforcement staffing that will maintain public
safety, traffic flow and parking turnover, as well as ini-
tiatives related to signage and neighborhood traffic
safety. The Inspectional Services appropriation con-
tinues to support the efforts of the department to en-
hance its building inspection programs.

Human Services

The $745,319 increase in the cabinet request for the
most part reflects the $375,058 increase in the appro-
priation to Community Centers. (It should be noted
that Community Centers currently has a collective
bargaining agreement in place that requires an in-
crease as of July 1, 1999.) The appropriation will al-
low the department to continue funding initiatives
such as expanded hours of operation and increased
numbers of English as a Second Language (ESL)
classes instituted in several Community Centers sites
during FY99. Community Centers will also build on
the progress made at its Microsoft computer centers.
Community Centers, in collaboration with the Boston
Tennis Association will continue to operate a year
round tennis program that utilizes the tennis bubble
constructed in Charlestown. Another area that the
Mayor has placed emphasis on this year is Cultural Af-
fairs. The Office is slated to receive a $150,000 alloca-
tion to distribute as grants in an effort to address
some of the needs of Boston’s cultural community. In
FY00, Cultural Affairs will be coordinating and facili-
tating the City’s cultural programs currently con-
ducted by various departments. The Office will also
seek to generate new resources for quality art pro-
grams in Boston Public Schools.

Housing and Neighborhood Development

This cabinet was created as a result of the Mayor’s
commitment to community renewal and public invest-
ment in the City’s neighborhoods. The Department of
Neighborhood Development has been charged with
making the Mayor’s housing production goal, as put
forth in his State of the City address, a reality. The
Department will be utilizing the proceeds from the
sale of 154 Berkeley Street to accomplish the goal
once those funds become available. Increased fund-
ing will also be used for “Boston It’s All Right Here” a
citywide public image and marketing initiative de-

u fd co) te! tt

signed to attract new residents to Boston’s neighbor-
hoods while encouraging the retention of current
residents.

Public Health Commission

The Commission is responsible for providing the pub-
lic health operations formerly provided by the Depart-
ment of Health and Hospitals (DHH) and Trustees of
Health and Hospitals (THH). It is a principal compo-
nent of the Boston Public Health Network consisting
of the Public Health Commission, Community Health
Centers, and the new Boston Medical Center.
Through Boston Emergency Medical Services, the
Commission also provides pre-hospital emergency
care.

The FY00 appropriation for the Public Health Com-
mission shows an increase of $4.6 million or 8.75%.
The appropriation continues to fund public health
programs such as AIDS, Domestic Violence Preven-
tion, Adolescent Health, Breast Cancer Outreach, and
Cancer Prevention and Awareness. A new initiative
related to infant mortality rates and improving birth
outcomes has also been added. The appropriation
funds an Emergency Medical Services (EMS) subsidy
of $6.1 million, a $1.44 million increase over the FY99
subsidy. The Public Health Commission budget also
covers the $11 million direct payment to the Boston
Medical Center required by the agreement reached
when the City consolidated Boston City Hospital and
Boston University Medical Center Hospital.

County Departments

Prior to FY98, state support of county corrections for
Suffolk County was by means of state aid into the Ci-
ty’s general fund. In FY93, the Commonwealth shifted
its support of county corrections from the City’s gen-
eral fund to directly funding the Sheriff's Department.
In FY96, the City was responsible for funding 12.5% of
the Sheriff's Department’s budget with the Common-
wealth funding the rest. Because this was about dou-
ble the percentage of the FY96 statewide local
contribution over statewide county corrections spend-
ing, the City received a reduction for FY97 to 8.75% of
the Sheriff's budget and a subsequent reduction in
FY99 to 6.875%. The City strongly favors a continua-
tion of the trend toward a fairer level of local contri-
bution to the Sheriff's Department. The City is
currently seeking a further reduction in the mainte-
nance of effort requirement to bring Suffolk County
more in line with statewide local contributions for
county corrections. In the FY00 budget the City is as-
suming a 5% maintenance of effort requirement for
the Sheriff's Department.

Summer y

Up until June 30, 1999, the City is responsible for
funding the Registry of Deeds for Suffolk County.
However, in FY00 the Registry of Deeds will be under
the jurisdiction of the State and will not require a City
appropriation.

School Department

The FY00 School Department budget contains a 5.7%
increase from the current FY99 appropriation, in-
creasing by $30.9 million. The FY00 budget request
funds all existing executed collective bargaining re-
quirements, allowing for increases in fixed costs, in-
flation, and salary adjustments while continuing to
implement the School Committee’s Five-year Educa-
tion Reform Plan, A Focus on Children. Some of the
educational initiatives include new Social Science
textbooks and instructional materials for grades 9 and
10, a reduction of Grade 2 class size to 25, a compre-
hensive literacy and math initiative, implementation
of Alternative Education Task Force recommenda-
tions and support for the LINC Boston Technology
Plan. (See the Education chapter of this volume for
more details.)

Reserve for Collective Bargaining

A collective bargaining reserve has been established
to fund the cost of unsettled collective bargaining
agreements for school department employees.

Pensions

The City’s pension expense has increased steadily
over the last several years. The City’s annual pension
funding requirement was $99.7 million in FY97 and
$104.8 million in FY98. The City has budgeted pen-
sion costs at $120.3 million in FY99 and expects to
spend $128.5 million on pension funding in FY00.
These numbers do not include pension costs allocated
to the Sheriff’s budget since FY95 and the Depart-
ment of Health & Hospitals or Public Health Commis-
sion since FY96. Meanwhile, the percentage of the
City’s overall pension liability that has been funded
has improved from 56% in FY94 to 67% in FY98. There
are two reasons for this. First, the average annual
rate of return on assets in recent years has signifi-
cantly exceeded the 8% rate of return assumed in the
City’s pension funding schedule. Second, the in-
creased percentage set aside for pension funding out
of new employees’ checks from 6% to greater than 8%
continues to aid the system’s trend toward full fund-
ing.

The impact of these two items is incorporated into the
City’s pension funding schedule each time the pension

Bo di ogy a) t 187

system does a full valuation. State law calls for full
valuations at least every three years. The most recent
valuation was approved during FY98 and the pension
system is therefore required to do another full valua-
tion in time to adjust the City’s pension funding
schedule for FY01 forward.

A fundamental shift regarding the liability for pension
cost-of-living-adjustments occurred in 1998 and was
reflected in the most recent valuation. The Common-
wealth will no longer fund cost-of-living-adjustments
as they have since the enactment of Proposition 2 1/2.
The City has opted to accept the responsibility for fu-
ture cost-of-living-adjustments for its retirees.

Debt Service

The City had expenditures for debt service of $79.0
million in FY97 and $83.4 million in FY98. The City
has a budget of $93.7 million for debt service in FY99
and expects to spend $101.5 million on debt service in
FY00. The increase in debt service in recent years re-
flects the increasing amounts that were borrowed in
FY97 ($90 million) and FY98 ($105 million) and
planned for in FY99 ($120 million) and FY00 ($120
million). The higher borrowing level is a conse-
quence of increased capital renovations and planned
new construction for the Boston Public Schools,
which is partially reimbursed by the Commonwealth.
However, because of parallel growth in the budget,
FY00 debt will remain under 7% of total expenditures,
as has been the case since FY88. For further detail
see the Capital Planning and Financial Management
chapters of this volume.

State Assessments

Accompanying the local aid distributions on the
cherry sheet are several charges to the City from the
Commonwealth. All but the state assessment for the
Massachusetts Bay Transit Authority (MBTA) are
relatively small. In accordance with Proposition 2 1/2,
these charges, on a statewide basis, cannot increase
annually by more than 2.5%. Consequently, the City’s
state assessment has grown slowly from $62.5 million
in FY97 to an estimated $67.2 million in FY00. The
cost of operating the MBTA has traditionally grown at
a much faster pace than the allowable 2.5% increase
in state assessments and consequently so has the
Commonwealth’s annual subsidy to the MBTA.

Reserve

The City is required by law to maintain a reserve on
its balance sheet of 2.5% of the prior year appropria-
tions, not including the School Department which has

its own separate reserve. The current balance of this
reserve is $18.7 million. Due to the significant reduc-
tion in FY97 of non-school departmental appropria-
tions as a result of the removal of hospital operations
from the budget, this reserve is already fully funded
through the end of FY00. The reserve can be used to
provide for extraordinary and unforeseen expendi-
tures and the Mayor may make drafts or transfers
against this fund with City Council approval only in
the month of June. Since the establishment of this
reserve, the City has yet to make any drafts or trans-
fers from the reserve.

Tregor
Emergency
Reserve

Beginning
Year
Balance

Funds
Out

17,925,000
17,925,000

17,925,000
17,925,000
18,679,642
18,679,642
18,679,642
18,679,642

Note:

The City prepares its financial statements in accor-
dance with generally accepted accounting principles
(GAAP) and publishes them annually in its Compre-
hensive Annual Financial Report (CAFR) and as an
appendix in all bond prospectuses issued by the City.
However, the budgetary basis accounting practices es-
tablished by the Massachusetts Department of Reve-
nue are used in constructing each year’s proposed
budget, in the budget approval process, and in moni-
toring the budget throughout the year. Therefore all
numbers used in this budget document are on a budg-
etary basis. There are no descriptions or discussions
of separate funds because one major way in which
budgetary basis accounting differs from GAAP is that
while certain activities and transactions (e.g. debt
service) are presented in separate funds in GAAP,
they are components of the general fund using budg-
etary basis accounting. For a fuller understanding of
the differences, a walk-through table demonstrating
the City’s revenue and expenditure totals for FY98 in
Budgetary basis accounting versus GAAP basis ac-
counting is presented at the end of the Financial
Management chapter.

ra, #m.ea #n4y B ou td tgraertt

Appropriations by Cabinet

FY97 FY98 FY99 FY00 Inc/(Dec)

Department Expenditure Expenditure Appropriation Recommended 99 vs 00

Mayor's Office Boston 2 to 6 0 0 376,790 547,692 170,902
Intergovernmental Relations 799,214 841,319 876,067 915,295 39,228

Law Department 3,746,414 3,411,411 3,939,060 4,215,681 276,621

Mayor's Office 1,570,891 1,606,276 1,801,600 1,820,409 18,809

Neighborhood Services 1,141,925 795,862 886 547 919,731 33,184

Public Information 538,627 591,808 809,907 828,656 18,749

Total 7,797,071 7,246,676 8,689,971 9,247 464 557,493

Chief Operating Officer Chief Operating Officer 720,069 874,450 923,710 951,399 27,689
Graphic Arts Department 1,252,577 1,198,978 1,392,991 1,434,753 41,762

Health Insurance 69,189,498 67,717,323 77,372,451 81,300,000 3,927,549

Human Resources 2,310,590 2,340,793 2,632,408 2,716,053 83,645

Labor Relations 791,088 823,849 905,698 919,455 i eWware

Management & Information Svs 6,725,321 6,939,708 7,689,397 8,320,078 630,681

Management Fund 210,000 207,092 225,000 225,000 0

Unemployment Compensation 464,802 34,111 50,000 50,000 0

Workers' Compensation Fund 3,740,475 3,644,867 3,729,000 3,400,000 -329,000

Total 85,404,420 83,781,171 94,920,655 99,316,738 4,396,083

Chief Financial Officer Assessing Department 5,169,933 4,838,585 5,156,971 5,396,692 239,721
Auditing Department 1,491,553 1,518,886 1,595,498 3,982,331 2,386,833

Budget Management 2,587,128 2,326,688 2,022,759 2,298,868 276,109

Execution of Courts 8,419,424 7,904,040 4,111,647 4,100,000 -11,647

Medicare Payments 2,491,827 2781,5%3 2,885,000 2,971,550 86,550

Pensions & Annuities 6,039,836 5,800,000 6,300,000 6,300,000 0

Purchasing Division 1,065,101 375,786 1,092,661 1,142,615 49,954

Retirement Board 1,376,100 19 413.303 0 0 0

Taxpayer Referral & Assistance 0 0 372,300 427,187 54,887

Treasury Department 3,598,143 SO 1,009 2,871,494 2,855,597 -15,897

Total 32,239,045 30,176,220 26,408,330 29,474,840 3,066,510

Public Safety Fire Department 101,497,783 109,645,613 114,149,438 115,938,472 1,789,034
Police Department 166,777,058 187,164,594 194,856,607 203,957,527 9,100,920

Total 268,274,841 296,810,207 309,006,045 319,895,999 10,889,954

Education Boston Public Schools 475,611,850 507,171,998 543,064,081 573,944,785 30,880,704
Total 475,611,850 507,171,998 543,064,081 573,944,785 30,880,704

Economic Development Boston Residents Job Policy 285,464 308,178 415,885 418,929 3,044
Minority/WWomen Business 349,920 464,216 529,617 544 888 15,271

Special Events & Tourism 1,037,003 1,001,704 1,626,641 1,614,303 -12,338

Total 1,672,387 1,774,098 2,572,143 2,578,120 5,977

Basic Services Central Fleet Maintenance 2,210,783 2,629,046 1,764,303 1,811,745 47,442
Consumer Affairs & Licensing 304,358 373,040 391,494 403,201 11,707

Election Department 2,955,450 2,795,536 3,076,533 3,220,445 143,912

Library Department 24,335,986 24,515,161 25,928,830 25,599,767 -329,063

Parks & Recreation Department 10,569,294 11,252,756 12,632,404 13,172,932 540,528

Property Management 13,218,698 13,238,294 15,069,324 15,991,120 921,796

Public Works Department 52,349,738 56,564,605 59,409,789 63,584,348 4,174,559

Registry Division 742,011 746,797 810,819 831,367 20,548

Snow Removal 5,022,843 4,764,996 4,311,934 4,392,536 80,602

Youth Fund 5,666,702 5,241,629 4,755,020 6,228,170 1,473,150

Total 117,375,863 122,121,860 128,150,450 135,235,631 7,085,181

Environmental Services Environment Department 712,196 715,671 884 837 914,596 29,759
Inspectional Services Dept 9,622,681 10,054,527 “PSE Gj ailiske 11,691,364 360,229

Transportation Department 21,474,478 21,753,987 25,176,584 27,055,387 1,878,803

Total 31,809,355 32,524,185 37,392,556 39,661,347 2,268,791

Human Services Boston Community Centers 11,160,656 11,969,158 13,427,283 13,802,341 375,058
Civil Rights 297,815 275,167 452,398 465,970 PSone

Community Partnership 862,017 1,433,664 1,496,060 1,532,036 35,976

Cultural Affairs 359,659 481,729 551,308 750,196 198,888

Elderly Commission 2,260,421 2,238,323 2,285,200 2,353,749 68,549

Emergency Shelter Commission 384 582 385,095 413,269 427,191 13,922

Veterans Services Department 2,398,552 2,070,615 2,505,475 2,539,799 34,324

Women's Commission 121,458 129,051 149,285 154,315 5,030

Total 17,845,160 18,982,802 21,280,278 22,025,597 745,319

Neighborhood Development Neighborhood Development 4,154,682 4,847,006 3,508,115 4,727,881 1,219,766
Rental Housing Resource Center 783,301 725,760 783,950 783,950 0

Total 4,937,983 5,572,766 4,292,065 5,511,831 1,219,766

Public Health Public Health Commission 60,890,000 66,677,610 52,844,000 57,467,668 4,623,668
Total 60,890,000 66,677,610 52,844,000 57 467,668 4,623,668

Non-Mayoral Departments City Clerk 702,425 811,122 819,612 836,080 16,468
City Council 2,690,099 2,751,027 3,272,663 3,330,986 58,323

Finance Commission 147,247 162,886 177,055 173,710 -3,345

Licensing Board 473,294 454,803 524,100 540,416 16,316

Registry of Deeds 1,654,096 1,722,766 1,796,501 0 -1,796,501

Suffolk County Sheriffs Dept 6,038,115 6,588,310 5,385,960 4,183,070 -1,202,890

Total 11,705,276 12,490,914 11,975,891 9,064,262 -2,911,629

S umm roy B d ge 1

Personnel Changes

The following table shows a four year comparison of
city funded full-time equivalent (FTE) positions.
(This includes both permanent and emergency em-
ployees.) The numbers used for FY00 are estimates
based on the current level of employees, current va-
cancies which are expected to be filled and plans for
new positions.

FY98- FY99 Changes—The total net increase of 495
positions from January 1, 1998 to January 1, 1999 was
largely due to the increase of 347 positions in the
school department. The increase of 45 positions in
Public Safety shows the impact of new classes. Basic
Services also shows a significant increase - 66 posi-
tions. The Library has added personnel to cover ex-
panded Saturday openings. In the case of Property
Management the increase is partially the result of a
transfer of code enforcement personnel from Neigh-
borhood Development to Property Management.

FY99-FY00 Changes - Well over half of the 310 position
increase that is projected to occur between January 1,
1999 and January 1, 2000 reflects the Mayor's priori-
ties in education and public safety. Additional civilian
staffing for the BPD Crime Lab and a large Police
class added in the second half of FY99 will result in an
estimated net increase of 48 by January 1, 2000.

Enrollment growth, school level programmatic adjust-
ments, technology support, increased facility mainte-
nance and the absorption of student support
coordinators by the general fund contribute to the
growth in the school personnel numbers. Another
contributing factor is the reduction in class size for
Grade 2 from 28 to 25 students. In FY00, the total net
increase for schools is expected to be 166 positions.

The number of positions in the Mayor’s Office cabinet
will increase in FY00. Boston 2 to 6 will have three
additional positions. An increase is also projected for
the Law Department; the department has been ag-
gressively recruiting to fill current vacancies.

In the Chief Operating Officer’s cabinet, most of the
increase of 13 is the result of increased staffing in the
Management & Information Services Department.
The department is seeking to strengthen its technical
support staff and better serve the expanding techno-
logical needs of other departments.

The major increase in Finance Cabinet positions from
January 1, 1999 to January 1, 2000 is the result of the
BAIS project in the Auditing Department. The
Budget Office increase is mainly a timing issue and

reflects the filling of positions vacant on January 1,
1999.

Basic Services cabinet staffing is projected to in-
crease substantially. Most of the increase will occur
in the Public Works Department. The department ex-
pects to fill a number of vacant laborer positions. In
an effort to improve the condition of the City’s Emer-
ald Necklace parks, the Parks Department will be
forming a dedicated Emerald Necklace Crew. The
Property Management increase relates to code en-
forcement officers, dog officers and municipal police
positions to cover its security responsibilities for City
of Boston property and Boston Housing Authority de-
velopments.

In the Environment Cabinet, the Inspectional Serv-
ices Department will fill current vacancies for build-
ing inspectors. The Transportation Department’s
increase relates to public safety issues. A reasonable
level of enforcement will require additional classes of
parking meter supervisors. (The department was at
an unusually low point for this category of employee
as of January 1, 1999 and has since added a new
class. )

The increase in the Human Services departments is
mostly the result of filling current vacancies.

Personnel Summary

1/1/97 1/1/98 1/1/99 1/1/00 Projected
FTE FTE Projected Inc/(Dec)
Office of the Mayor Boston 2 to 6 - - 3.0 6.0 320
Intergovernmental Relations 10.0 10.0 10.0 10.0 -
Law Department 46.5 45.0 46.0 50.0 4.0
Mayor's Office 26.0 LIES 2S 27.0 (0.5)
Neighborhood Services 22.0 19.0 195 19.5 -
Office of New Bostonians - : - - -
Public Information 14.0 14.5 17.5 18.0 0.5
Total 118.5 116.0 123.5 130.5 7.0
Chief Operating Officer Chief Operating Officer 10.0 hp |e 9.5 9.5 -
Graphic Arts 36.0 39.0 37.0 38.0 1.0
Human Resources 32.5 34.0 i Ls) 395) 2.0
Labor Relations 11.0 11.0 11.0 12.0 1.0
Management Info Svcs 74.0 72.0 82.0 91.0 9.0
Workers' Comp Service 10.5 11.5 - - -
Total 174.0 179.0 191.0 204.0 13.0
Chief Financial Officer Assessing Department 91.0 95.0 92.0 92.0 -
Auditing Department sles: oN) te 515 63.0 LS
Budget Management 33.5 33.0 27.0 32.0 5.0
Purchasing Division 20.0 22.0 FAT, 21.0 -
Retirement Board SiS - - - -
Taxpayer Referral & Assistance - - 10.0 10.0 -
Treasury Department 56.5 39:5 59°) Doe -
Total 264.0 241.0 261.0 71 IG hee 16.5
Public Safety Fire Department 1,720.0 1,734.5 LSS SES 1,756.0 0.5
Police Department 2,968.5 3,000.5 3,024.5 a0 i2a0 47.5
Total 4,688.5 4,735.0 4,780.0 4,828.0 48.0
Education School Department Test :9 7,704.8 8,052.0 8,218.0 166.0
Total 7,511.9 7,704.8 8,052.0 8,218.0 166.0
Economic Development Minority/Women Business 8.0 8.0 8.0 8.0 -
Office of Boston RJP 8.0 8.0 9.0 10.0 1.0
Special Events & Tourism 10.0 10.0 9.0 10.0 1.0
Total 26.0 26.0 26.0 28.0 2.0
Basic City Services Central Fleet Maintenance - - 47.0 47.0 -
Consumer Affairs & Licensing 6.5 8.5 8.5 8.5 -
Election 58.9 54.3 57.9 58.0 0.1
Library Department 529.0 529.0 559.7 560.0 0.3
Parks and Recreation PAPN NS 23805 244.0 250.0 6.0
Property Management 233.0 239.0 277.0 294.0 17.0
Public Works Department 475.5 479.0 420.5 450.0 29.5
Registry Division Pa Ziley Oiled Zies -
Youth Fund 1.0 1.0 1.0 2.0 1.0
Total 1,547.9 1,570.8 1,637.1 1,691.0 53.9
Environmental Services Environment 14.5 15.0 13-0 14.0 1.0
Inspectional Services 201.0 202.0 ZL2S 225.0 2.5
Transportation 393.0 402.5 379.0 425.0 46.0
Total 608.5 619.5 614.5 664.0 49.5
Human Services Civil Rights Thee) 6.5 ihe iS -
Community Centers 363.5 387.0 378.5 380.0 Ila
Community Partnerships 8.0 8.0 8.0 10.0 2.0
Cultural Affairs 8.0 8.0 6.0 7.0 1.0
Elderly Commission 61.0 6155 59.5 61.0 iS
Emergency Shelter 5.0 4.0 4.0 6.0 2.0
Veterans Services eS hype) 19.0 19.0 -
Women's Commission 2.0 tS 2.0 2 0.5
Total 472.5 495.0 484.5 493.0 8.5
Neighborhood Development Neighborhood Development 13225 125.0 113.5 120.0 6.5
Rental Housing Resource Center 17 fe 16.5 16.5 15.0 (1.5)
Total 150.0 141.5 130.0 135.0 5.0
Public Health Public Health Commission 729.0 726.3 741.0 741.0 -
Total 729.0 726.3 741.0 741.0 -
Non-Mayoral City Clerk 15.0 15.0 14.0 14.0 -
City Council 60.5 60.5 67.0 64.0 (3.0)
Finance Commission 4.0 3.0 4.0 4.0 -
Licensing Board 8.5 10.0 10.0 10.0 -
Registry of Deeds 56.0 53.0 56.0 : (56.0)
Sheriffs Department - - - - -
Total 144.0 141.5 151.0 92.0 59.0
Grand Total 16,434.8 16,696.4 17,191.6 17,502.0 310.4

Siu h ma fk y B @ 4d ‘oy of t 231

External Funds

The City’s general fund budget for FY00 is $1.605 bil-
lion. Supplementing the services that are provided by
this $1.605 billion is approximately $340 million in ex-
ternal funds. These funds consist mostly of federal,
state and private funding earmarked for specific pur-
poses. Education, housing, economic development,
health, and corrections are some of the largest areas
for which these funds are targeted.

Twenty-four departments receive federal, state or
other forms of external funding. Since there are hun-
dreds of grants and many of them are small, the focus
here is on the largest grants. Over 90% of the City’s
external funds are found in six of the twenty-four de-
partments. These six departments are the School De-
partment, Neighborhood Development, Sheriff's
Department, Public Health Commission, Library De-
partment, and Police Department. Other depart-
ments that also have significant grant funding are the
Elderly Commission, the Youth Fund, and the Trans-
portation Department. Descriptions and amounts for
grants by department can be found in Volumes Two
and Three.

State funding provided for the Central Artery / Third
Harbor Tunnel related City services is not mentioned
below because this significant amount of funding is
diffused among several City departments. As the pur-
pose of the funding is project-specific, the duration of
this funding will not go beyond the project itself. The
project is in its peak construction years from FY98
through FY00. The departments providing the most
significant services are Transportation, Fire, Police
and the Public Health Commission. Even before the
project passes its construction peak, the expected de-
crease in federal funding for state transportation proj-
ects is expected to impact the amount the state funds

External Funds

Boston Public Schools
Neighborhood Development

Suffolk County Sheriff
Public Health Commission
Library Department

Police Department

Other

for City services for the Central Artery Project. The
City is currently in negotiations with the Central Ar-
tery Project administrators; actual funding for FY00
has not been finalized. The City is projecting level
funding for FY00 but is expecting decreases in FY01, if
not sooner.

Federal Grants

Some of the larger federal grants received by the City
have been a vital source of funding for many years.
For example, in education, the School Department is
expected in FY00 to receive $24.1 million in Title I en-
titlement, a grant that the City has been receiving for
a number of years. This funding has supplemented
education programs in schools with significant popu-
lations of low-income students. The City has also re-
ceived for many years Community Development Block
Grant (CDBG) funding for a variety of neighborhood
development activities. Other sources of federal fund-
ing received by the City address diverse needs and/or
creative approaches such as community policing,
housing support for the homeless, and investment in
the City’s empowerment zone. What follows is a de-
scription of the largest federal and state supported
programs in the six departments managing the bulk of
the City’s external fund resources.

Neighborhood Development

The Community Development Block Grant (CDBG) is
a sizeable annual grant from the U.S. Department of
Housing and Urban Development (HUD) to the City of
Boston designed to fund a variety of neighborhood de-
velopment activities. The City expended approxi-
mately $36.2 million in CDBG funding in FY98, and
estimates spendin $28.8 million in FY99 and $32 mil-
lion in FY00. At least 70% of CDBG funds must be
used to benefit low and moderate-income households.
CDBG funds are used to produce and preserve afford-

FY98
enditure

FY99
Es timated

FY00
Es timated

78,282,156
87,774,551
73,472,486
30,560,294

9,015,284

8,466,379
16,603,057

304,174,207

83,368,350
77,504,302
80,913,644
26,328,689

9,541,223
14,510,328
19,269,160

311,435,696

B wu id gi oe t

94,110,165
93,377,317
89,822,560
29,245,945

9,311,803

4,115,819
20,436,925

340,420,534

able housing, revitalize neighborhood commercial dis-
tricts, assist the renovation of non-profit facilities,
improve vacant lots, promote and monitor fair hous-
ing activities, and assist non-profit organizations in
the operation of emergency shelters, health care,
youth and adult literacy programs. CDBG funds can-
not be used for general government services and can
not replace funding cuts from existing public service
activities. CDBG funding is also being utilized as a se-
curity for Section 108 loans.

Emergency Shelter Grant/Shelter Plus Care/Suppor-
tive Housing. A 30 percent drop is expected in FY00
for these three federally funded grants, administered
by HUD. FY99 funding will be $19.5 million while only
$13.7 million is expected for FY00. The Emergency
Shelter Grant supports the development and opera-
tions of emergency shelters for the homeless. The
Shelter Plus Care grant program provides rental assis-
tance for homeless people with disabilities, primarily
those with serious mental illness, chronic problems
with alcohol and/or drugs, and AIDS. Other federal,
state or local sources provide the support services
that must match the value of the rental assistance.
The Supportive Housing Program provides service, op-
erating and/or capital funds for a broad range of hous-
ing and social service projects. The program requires
that applicants match the amount of supportive hous-
ing acquisition and development funds requested with
an equal amount of funding from other sources.

HOME Investment Partnership. The HOME Partner-
ship Program is a grant from HUD to support the de-
velopment of affordable housing. The City expended
$7.1 million in this program in FY98 and estimates
spending $11.8 million in FY99. A drop of 36 percent
is expected in FY00; projected funding is only $7.6
million. Eligible activities include new construction
or rehabilitation of housing, tenant-based rental assis-
tance for up to two years, and assistance to first-time
home buyers. All HOME funds must be used to bene-
fit low and moderate-income households. Fifteen per-
cent of HOME funds are set aside for projects
sponsored by Community Housing Development Or-
ganizations and five percent is set aside for operating
costs for Community Housing Development Organiza-
tions.

Section 108 Loan Project/Economic Development Ini-
tiative. Section 108 funds are available to eligible cit-
ies from HUD on an application basis. The City,
through a pledge of its current and future CDBG grant
awards, secures section 108 funds. These funds can
only be used for economic development projects. The
Economic Development Initiative Program is a special

Summary

HUD program that makes available grants to cities to
spur economic opportunity. This initiative also pro-
motes community development through a long-term
strategy: a) establishing community-based partner-
ships; b) training residents for new job opportunities;
c) developing a plan for responding to community
needs by integrating economic, physical human, and
other strategies. The City received two multi year
grants of $22 million each for these two programs for
use within the Empowerment Zone. Funding will last
through June 30, 2000. (Another $3 million was re-
served for social service activities in the Empower-
ment Zone.). The funds are used to assist new or
existing smaller scale neighborhood commercial en-
terprises and larger scale commercial and/or indus-
trial development projects. These funds must be used
to lower the cost or lower the risk to the City on Sec-
tion 108 loans made to eligible economic development
projects. Spend down of these funds has been spread
over the past several years.

School Department

The School Department’s FY00 general fund budget of
$573.9 million is supplemented with approximately
$94.1 million in external funds. There are four main
categories of funding: formula grants, competitive
grants, reimbursements and “other” (private re-
sources for the most part). Title I Entitlement and
the School Lunch Reimbursement program are the
two largest external funding items and make up the
bulk of federal support. The Community Partnerships
Program funding is the largest competitive grant re-
ceived by the School Department. This state sup-
ported program is described below under State
Funding.

Title I Entitlement. Title I Entitlement is a federal
program that supplements education in schools with
significant populations of low-income students. This
key source of funding for the Boston Public Schools
makes up a large portion of the federal formula grant
funding received. The School Department estimates
spending levels for this program in FY99 and FY00 of
$23.6 million and $24.1 million, respectively.

School Lunch. The School Lunch program, adminis-
tered by the Department of Agriculture, reimburses
local school districts on a per meal basis for the costs
of breakfasts and lunches for low-income students.
The School Department has budgeted this federally
funded reimbursement program at $19.1 million and
$19.5 million for FY99 and FY00, respectively.

SPED 94-142 Entitlement. This is a federal formula
grant in support of special education programs. The
amount budgeted by the School Department in this

Bw dsHh ae t 23

program area for FY99 and FY00 is $6.7 million and
$7.3 million, respectively.

Public Health Commission

Boston Healthy Start. The purpose of this project is
to develop a comprehensive needs assessment and
carry out a service plan to address those factors most
affecting infant mortality in the City of Boston. Three
project areas consist of those census tracts found to
have both the highest numbers of infant deaths and
the highest infant mortality rates in the City. Overall
the City has experienced significant improvement in
this health area. The City’s level of funding for this
program for FY99 is $2.3 million; in FY00 the Public
Health Commission projects to receive $2.5 million.

Ryan White Care Act, Title 1. This funding supports
delivery or enhancement of HIV-related outpatient
and ambulatory health and support services and inpa-
tient case management services that prevent unnec-
essary hospitalization or that expedite discharge,
when medically appropriate, from inpatient facilities.
The estimated level of spending for this federally
funded program is $9.4 million for FY99 and $9.87 mil-
lion for FY00.

Police Department

The Police Department’s grant funding on both the
federal and state level has focused most upon adding
police officers and community policing.

Cops Universal Hiring and Universal Hiring 2. These
federal programs, awarded by the Office of Commu-
nity Oriented Policing Services, help support the cost
for a total of 65 police officers. This funding helps
support the neighborhood-policing program. The total
cost supported by these two grants was just under $1
million in FY98. Estimated expenditures for FY99 and
FY00 are $1.58 million and $1.27 million, respectively.

BJA Block Grants. This federal program is awarded
by the Bureau of Justice for the purpose of reducing
crime and improving public safety through the pur-
chase of police equipment, the use of police overtime,
and to support community partnerships for commu-
nity policing. The spending for this program was $1.66
million in FY98, and is estimated to be $4.56 million in
FY99 and $2.1M in FY00.

Overall, the level of support from the federal govern-
ment for local crime control has increased signifi-
cantly during the past few years, going from $3.9
million in FY97 to an estimated $9 million in FY99.
Projected spending for FY00 is conservatively esti-
mated at $3.6 million (includes only grants that are
definite) and is likely to exceed this amount. The na-
ture of the programs has tended to be short-term

Zea S

ummary

funding that runs its course and serves its purpose
and is then supplanted by new programs. For exam-
ple, the Police Department assumes in their budget
plans that the following grants will have spent their
last funds in FY99:

Comprehensive Communities Program: Multi-year
funding provides for the implementation of the Stra-
tegic Planning and Community Mobilization process, a
Youth Service Providers Network, Alternatives to In-
carceration Network, Treatment Provisions within the
Boston Drug Diversion Courts, and the Grove Hall
Safe Neighborhood Initiative. Federal Total: $2.3M.

Regional Community Policing Initiative. This program
focuses upon.collaboration of citizens, civilians, and
other stakeholders with particular emphasis on new
areas of knowledge, skills and techniques required to
successfully practice, manage and serve as partners in
the delivery of community policing. The estimated
spending for this program is $907,353 in FY99.

Peace Project: Provides consistent, clear, and coordi-
nated services to victims of domestic violence. Fed-
eral one year Total: $186,000.

State Grants

State grant funding for the City has grown most sig-
nificantly over the last few years in the area of correc-
tions. In FY94, the state funded approximately 74% of
the Suffolk County Sheriff's budget. By FY99 the
amount was 93.125% of a growing budget. Over the
long-term, state support for the City’s Library system
has also grown although the Library is projecting a de-
crease in regional library funding for FY00. The state’s
largest funding for local services is in the area of K
through 12 education. However, most of this funding
is direct to the City’s general fund in which the major
requirement relates to a minimum general fund
school budget. For FY00, the state is projected to dis-
tribute $180 million to Boston directly to the City’s
general fund in Chapter 70 educational reform aid.

Sheriff's Department

State funding for the Sheriff's Department is mainly
composed of direct funding for the operation of the
department from the state’s general fund. A relatively
small additional piece of funding comes from Suffolk
County’s portion of the state deeds excise tax.

Over time, the state has shifted the various costs of
running counties from the municipalities to the state.
This began in the 1970’s when the cost of courthouse
employees was shifted to the state. In 1985, the only
courthouse employees not included in the earlier
shift, the maintenance workers, became state employ-

Baw geod

ees. Due to the burden of an increasing jail popula-
tion statewide, the state committed during the 1980's
to building new jails and renovating current jails in
order to expand the number of cells statewide. Thus,
the Suffolk County’s two old and relatively dilapidated
jails were replaced with new and larger facilities. The
construction costs were fully paid for by the state.

The state also committed to cover, at a minimum, the
growing costs of corrections for municipalities beyond
the 2.5% growth that could be managed with allowable
property tax growth. Over time, this meant the state
was covering a larger and larger portion of the county
corrections’ cost. For Suffolk County, this has culmi-
nated with the state covering over ninety percent of
the Sheriff's Department’s expenses since FY97.

Direct state funding for the two jails operated by the
Sheriff’s Department has increased from $40.6 million
in FY94 to $54.1 in FY96 to $75.6 million in FY99. This
funding is further supplemented by $3.2 million in
FY99 and $5.4 million projected in FY00 in deeds ex-
cise revenue. The FY00 proposed budget assumes the
state will increase its percentage of funding for the
Sheriff's operations, from the current 93.125% to 95%.
The City is seeking to reduce its share of local funding
for corrections to a percentage closer to the statewide
average that is currently less than 5%. The overall di-
rection in state financing for county operations is
state takeover. In FY00, the Suffolk County Registry
of Deeds will be assimilated by the state.

School Department

Community Partnership for Children - This is a State
program to create an early education system in the
City of Boston with Head Start Centers, Private Day
Care Center, and Family Based Day Care. The amount
budgeted by the School Department for this program
is $10.8 million and $11.9 million in FY99 and FY00,
respectively.

Chapter 636 Aid - The City has for a number of years
been receiving Chapter 636 funding in order to ad-
dress desegregation challenges in the area of Equal
Education Improvement, and Magnet Schools. The
City received approximately $5.5 million in Chapter
636 aid in FY97, FY98, and FY99 and expects to re-
ceive a similar amount in FY00.

Class Size Reduction - The School Department ex-
pects to receive $3.3 million from a new state grant
program to increase staff in the classrooms.

Public Health Commission

Shelter: Long Island and Long Island Annex. This
project provides homeless services in the form of shel-
ter, food, clothing, health care, and social services for

Ss) ub om me Gy y B

up to 360 homeless adult men and women. Of the 360
beds, 50 beds are reserved for women, 310 beds are re-
served for men and one room for families in crisis.
Guests arrive at the shelter via shuttle bus from the
Boston Medical Center campus. In addition, the Pub-
lic Health Commission receives state funding for the
annex at Long Island Shelter. This funding provides
homeless services for 100 homeless clients nightly, in-
cluding food, shelter, case management, and health
care. Overall, external funding for homeless services
in the Public Health Commission budget for FY00 to-
tals $7.6 million.

Library Department

Total funding for the following three state grant pro-
grams is estimated at $8.4 million for FY99 and FY00.

Library of Last Recourse. The Library of Last Recourse
provides reference and research services for individ-
ual residents of the Commonwealth at the Boston
Public Library through developing, maintaining, and
preserving comprehensive collections of a research
and archival nature to supplement library resources
available throughout Massachusetts. The Library
maintains the personal resources, expertise, and bib-
liographic skills needed to develop and provide access
to reference and research collections.

Boston Regional Library. The Boston Regional Library
System - Program (BRLS), which has replaced the
Eastern Regional Library System, is a cooperative or-
ganization of 105 public, academic, school and special
(government, medical, non-profit, and corporate) li-
braries in the cities of Boston, Malden and Chelsea..
Headquartered at the Boston Public Library, BRLS
supports enhanced reference and information serv-
ices, interlibrary loan and journal document delivery,
continuing education and staff development, consult-
ing on library operations and a variety of cooperative
programs. The BRLS operates under a cost reim-
bursement agreement granted by the Commonwealth
of Massachusetts Board of Library Commissioners.

State Aid to Libraries. This funding is provided by the
Commonwealth of Massachusetts Board of Library
Commissioners to the Trustees of the Public Library of
the City of Boston annually. The Library is required to
meet certain minimum standards of free public li-
brary service established by the Board to be eligible to
receive the grant.

up Os ey t Z2e5

FY00 - FY01 Budget Plan

Introduction

In the FY97 Recommended Budget Overview, a two-
year financial projection was presented for the first
time. While statutorily the City must maintain an an-
nual budget process subject to the appropriating
authority of the City Council, the second year projec-
tion provides a useful context for these decisions.

In projecting the City’s operating budget for FY01, the
issue of state aid stands out as the most critical. FY00
is the last year of the statutorily established funding
schedule for education reform. There has yet to be
established a post-FY00 funding schedule. This leaves
the City without a clear picture of the size of its Chap-
ter 70 Education aid for FY01.

The Adopted Budget for FY00 has been based on the
most current available revenue picture. The FY01
plan reflects the best estimate of revenues as well as
projecting the major components of expenditures
given current policy and cost trends.

Revenue Trends

The following pie chart displays the breakdown of
revenue projected for FY01. (Figure 8.)

a TEACHERS
PENSIONS
: 2.3%

NET

PROPERTY,

TAX LEVY \ STATE
51.6% AID

— FINES
3.6%
i, OTHER
rales s REVENUE
9.1%

FY01 Estimated Revenue

Numbers may not add to 100% due to rounding

Figure 8

Major revenue trends for FY01 include:

Property Tax Levy The 2.5% increase and new growth
will result in a projected $40.9 million in additional
tax levy.

Excises The three major local excises (motor vehicle,
room occupancy, and jet fuel) will increase $1.8 mil-
lion or 2.4%, capturing the inflationary affects on re-
ceipts.

Fines With no change expected in parking fines, fine
revenue should be essentially unchanged from FY00.

Interest on Investments With interest rates expected
to remain stable, interest income is not expected to
change.

Payments in Lieu of Taxes With no new agreements
expected, PILOT revenue should increase $0.6 million
or 2.8%. This increase captures the inflation in the
current agreements.

Chapter 121A Increases in payments will be nearly
offset by expiring agreements resulting in little
change from FY99.

Miscellaneous Department Revenue Projected from
historical trends and conservative economic assump-
tions, miscellaneous department income should de-
cline slightly from FY00 expected receipts.

Licenses and Permits Projected to be essentially un-
changed in FY00.

Penalties & Interest Projected to be essentially un-
changed in FY00.

Available Funds Should remain unchanged from
FY00.

State Aid Projected to increase $24.3 million or 5.3%.
Education reform funding is on a statutory seven year
schedule which ends in FY00. There has yet to be es-
tablished a post FY00 funding schedule. In addition,
the phase-out of the use of a portion of lottery pro-
ceeds for state purposes will be completed in FY00.
Therefore, the City’s lottery distribution in FY00 will
reflect only profit growth in the lottery

Teachers Pension Reimbursement An increase of
2.3% is based on the reimbursement arrangement
with the state and is reasonably predictable.

Non-Recurring Revenues for FY01, as in FY00, $1 mil-
lion will be applied to the Risk Retention Reserve
through a transfer from the surplus property fund.

Total revenues in FY00 are projected to increase by
$63.1 million, or 3.9% over FY00 budget projections.
This increase is lower than that estimated in FY00,
due mostly to conservative revenue estimates and a
concern that the economy may not be able to sustain
its current level of growth for the 27 months from to-
day to the end of FY01.

mom a *T ey B ot ed ¥g)¥ettt

CITY OF BOSTON
BUDGET SUMMARY

(Dollars in Millions )

Total Recurrng Revenue
Non-Recurring Revenue

Total Revenues

EXPENDITURES
City Departments
Public Health Commission
County
School Department
Reserve for Collective Bargaining

Total Appropriations
Pensions

Debt Service

State Assessments
Reserve

Total Fixed Costs

Total Expenditures

Surplus (Deficit)

FY00

858.28
(33.01)
74.42
59.88
18.00
19.82
34.36
34.26
Disa
10.20
11.64
457.19

37.50

1,603.85
1.00

1,604.85

669.63
57.47
4.68
573.94
1.82

1,307.54
P2855
101.52

67.29
0.00
297A)

1,604.85

0.00

Numbers may not add due to rounding

SG m mia fr ¥

B wv id gy oy t

FY01

Budget Budget

899.13
(38.72)
76.20
59.93
18.00
20.38
34.70
34.07
21.43
10.34
11.64
481.47

38.36

1,666.93
1.00

1,667.93

689.72
my
4.82
596.90
0.00

1,350.64
134.91
113.46
68.93
0.00
Shee

1,667.93

0.00

Expenditure Trends

The following pie chart displays the allocation of ex-
penditures projected for FY01. (Figure 9.)

SCHOOL
DEPT ~ COUNTY DEPTS.

35.8% Og 0.3%

CITY
DEPTS.
41.4%

PENSIONS
8.1%

PUBLIC ———“

HEALTH / STATE

Sipe Se ASSESSMENTS
3.5% DEBT 41%

SERVICE
6.8%

FY01 Estimated Expenditures

Numbers may not add to 100% due to rounding

Figure 9

Major expenditure trends for FY01 include:

City Departments With no long-term program in-
creases on the horizon, the major impacts on City de-
partment appropriations are collective bargaining and
inflation. Based on current revenue projections for
FY01 and the uncertainty of the level of Chapter 70
Education Aid, along with the increases projected for
FY01 fixed costs, City Departments in total will be
limited to a 8% increase over FY00 appropriations.
Any cost of living increases included in future collec-
tive bargaining agreements will have to be negotiated
with this fact in mind. A big unknown is still the im-
pact of the educational incentive provision (the
“Quinn Bill’) in Police Department contracts. No new
positions are planned for any programs at this time.
Inflationary cost increases are particularly significant
for large contractual service items in basic city serv-
ices such as trash removal and alterations and repair
contracts, for utilities costs, and employee health
benefits.

Public Health Commission Projecting public health
services and EMS at current levels, the City’s net sub-
sidy to the PHC is projected to increase 3% over the
FY00 Recommended Budget. Due to the non-
operational costs included in PHC’s budget such as
health benefits, pension costs and annual assistance
grant to the Boston Medical Center, the city will need
to evaluate the feasibility of that 8% during the FY01
budget formulation process.

2558 S/.ulm am «of wy ¥ EB

County Departments Again, the City’s position regard-
ing the proposed state takeover of county functions
argues for equalizing the local effort to 5%, the same
as the state-wide average for other counties. Pending
resolution of this issue at the state level, the FY01
projection conservatively assumes a 3% increase in
these appropriations, but this is one item that is out
of the control of City management.

School Department New programs with multi-year
planning horizons are included in the FY00 budget re-
sulting in a projected 4% increase for FY01. Currently
there are no collective bargaining agreements that
carry into FY01. The continued gradual increase in
enrollment, particularly in the earlier grade levels,
will carry a per student cost increase over FY00. Con-
tinued funding of ongoing initiatives such as the Com-
prehensive Literacy and Math Initiative, reductions in
student-teacher ratios in grades one and two, support
for the Technology Initiative and bus purchases are
factored in, as are inflationary impacts.

The total appropriations for departmental services
under these parameters would increase by $43.1 mil-
lion in FY01 over the Recommended Budget for FY00.

Fixed Costs Given that the pension funding schedule
for the current city payroll, the debt service policies
followed in the City’s capital plan, and mandated state
assessments are known, fixed costs can be predicted
fairly accurately. In FY01, these costs will increase by
$20.0 million, led by an $11.9 million increase in debt
service due to larger borrowings to fund school con-
struction and other capital projects.

Bottom line Under these scenarios, the City’s Operat-
ing Budget would remain balanced.

Planning a Balanced Budget

Preparing a two-year planning horizon is useful be-
cause it provides time to make adjustments to relieve
the cost pressures on certain services. It also pro-
motes cost-saving or new programming alternatives to
improve the financial position projected in the second
year, and helps us to monitor changes in assumptions
as new needs or innovations present themselves.

Much of the City’s budget remains fairly stable year-
to-year, but variances as little as 1% could add up to a
$16 million problem in the bottom line. Common ar-
eas of variance are snow removal, with year-to-year
swings of millions of dollars; legal settlements, which
the City attempts to reserve for but may need to ab-
sorb on a pay-as-you-go basis; public safety overtime,
particularly if a significant event occurs (when the
Red Sox win the championship, for example) or digni-
taries visit the City; or an outside source of funding

Uw sgt yor it

which is suddenly eliminated for an essential need
such as summer jobs or child care slots.

The City’s fiscal controls are effective in reducing the
chance for an unmanageable deficit. Managing posi-
tion vacancies through the Office of Budget Manage-
ment and the COO Office ensures that justifications to
add personnel fit within the City’s fiscal parameters.
The development and implementation of a new finan-
cial and human resources information system will
raise the level of systematic controls that can be used
to project and plan for personnel funding require-
ments.

Conclusion

This two-year overview is provided as a guide to un-
derstand the impacts of the decisions presented in

the Recommended Budget, and to provide a frame-
work for future initiatives and financing proposals.

Although it is not statutorily required, it is a useful

tool in long-range planning and policy analysis.

From a budget planning and management standpoint,
the parameters summarized here are being built upon
through an interactive forecast model with key de-
partments, to allow the development of multi-year
scenarios for individual department’s operations, set
within the financial constraints affecting the City’s
overall budget.

Sh me tr By -d pe

a the tothnvwinng ye ean’ eaplaye Lie biedia@ ad a9: fd ae ptopetals etc UM RR
a frndithein srejeatedt for FYWA (Pigass @ +S PS be TAR a
v hea) Gan aaa e hanna Hird iP i

| ’ Aaah et oh % VANE oi ERE SE
01 RTE TRS AEE OO RAT EIN Sib
Cae Drape taryi? be aT Yn ae init sy abet _

ook..0g? 4

ry , “ ohh ny) tyre Aan ctetie ge tenaquey=> ofT
) Oliv, ofapertreeagr te, worms: case abi ytass
‘ fate nd ag torteerenes als mite de WOR ons ented _ a
avy Voi (una etl e aorrrcbad ly Beep) ergs = Tas
. P, : ene euthe | 4 ort tena
2 Carry hic F TRE ACR oral uh ewe
re f ; TT, petiadigr! he okt, RAR?
Pim ¢ . : Sh Pw Par ete e et eh) ih
0 us — Ra? ie’ sk Gio on tad tale ist
~# eh Pietra Oe Mea Bini te Ron :
} Reiter este RAN iid! I) ic) ere
ve — : ili, & Te ts) Pe thet init “n°
die dan vie Pte een, Sat. a0. 0
: pikes? la Vito: at hte goame Pay Koel? ‘
sw Fa hee a yl teeteghnnrgté eas ot
yee lstorro dl Wetudeoal awe dete F
me Shiva) a Set aot manel penne ef ne wali.
Foe, EE Lip 2 si emgacoetifh Nod te aeiyao ;
‘ Le Ae
vert 7 7 le
sannen » stein Mer | 5 ght
ee via @ ow ahd ota! eta tty sont iad bap r
} y uw! Tae eee) G) dages i e, ob @ day _
hemes ahion tl Uke ALCAen) sae begie é ¢ Mu mo Vil eee ah eas hee ee :
yi tsai etntinin in’ ' ae bandos -
Wee DS ep vee raat Se eee ~ See ieee heel Ai ("QS Saperet- . or ;
a ie Retype ou'd pereds (tteucet
° ‘
ne Manaiz s Bslanced Rodent ;
’ o_ J - 5 ie Poepartag, a Owe yeas piknong alice i» upely! Be ne : ;
' (@er) wevide: lime to make WA Sarees bs te ewe : ~
| 7 ed ce a ee LT
, Le " ay nane tt Ste pg eAieey Memeo me. . pe
aiites i. eit 4 wi ee anger eer pueriat ;) the ae

ern ka @! cstcniriaiias ~~ :

ruts) cr oe _ « aah : a

banat

it awglihs ps hg +e op. ak ar bod Pega
oem a erry tear io Galea. : Pr: hie T7224 i rn
didy LO One FG \o yrrpdenine tos Pama Ging Qi iy teeter Lane “a
ro into ania De Spe He ae) _ Mey Tae Le kek be ewok
uperpastal Ceage tabu sot wa ~ > TOF ar tnd GReee |
Wealth baneen prmabay rota aod « | ee oe ee ee

*
2

Cone stin

°e- sm
=s —

ory
é-

See ati
Nga, t
Sa tty

City Council Orders Filed by the Mayor

Operating Budget Orders:
¢ Appropriation and Tax Order for the Fiscal Year 2000

¢ Appropriation Order for the Boston Public Schools for Fiscal Year 2000

Capital Plan Orders:
¢ Appropriation Order for Pave the Way 2000 program
© Seven loan orders authorized under the provisions of Chapter 44 of the General Laws

1. Public Buildings Construction

2. Public Buildings Remodeling & Repair

3. Department Equipment

4. Cemeteries

5. Transportation Study & Development Plans

6. Outdoor Recreational and Athletic Facilities

7. Financial System hardware and software - amendment to previous authorization

¢ Urban renewal program authorized under the provisions of Chapter 121B of the General Laws
° School Project Loan - Improvements, construction & repair authorized under authority of Chapter 645 of the Acts of 1948

¢ General Capital improvements authorized under the authority of Chapter 642 of the Acts of 1966

Cabtey eeror anor) Or Oe hes

’ : A -be
is * My ri t :
Ae me ‘A ' 2
wa 1 te :

¢ ae y ot i
of : 7 ‘ .

o*
. 4
f
a

ae.

»
ot
he ©
*4 oy = 7
aa
=

ne *y, 1 7 pie Pr a

on Thy rer |

Ni
Li ad a >
Ue j ay ; i. rh)
be ’ & eo)
¢ , 7 ,

ay 1 we s] q : q i

ae A ee ‘Dd ee fF hee a ee Pee
Fe UR Die OM Me
44 4 at : 2 ye ~ ,) ; | ‘ : {
rey 4 iy a he Vee

CITY OF BOSTON
IN CITY COUNCIL

Appropriation and Tax Order for the fiscal year
Commencing July 1, 1999 and ending June 30, 2000

ORDERED:

I. That to meet the current expenses of the City of Boston and the County of Suffolk, in the fiscal year commencing
July 1, 1999 and ending June 30, 2000, the respective sums of money specified in the schedules hereinafter set out,
be, and the same hereby are, appropriated for expenditure under the direction of the respective boards and officers
severally specified, for the several specific purposes hereinafter designated and, except for transfers lawfully made,
for such purposes only said appropriations, to the extent they are for the maintenance and operation of parking
meters, and the regulation of parking and other activities incident thereto (which is hereby determined to be
$10,000,000), being made out of the income from parking meters and, to the extent they are for other purposes,
being made out of the proceeds from the sale of tax title possessions and receipts from tax title redemptions in
addition to the total real and personal property taxes of prior years collected from July 1, 1998 up to and including
March 31, 1999, as certified by the City Auditor under Section 23 of Chapter 59 of the General Laws and the
proceeds from the sale of surplus property to be transferred in an amount not to exceed $1,000,000 pursuant to the
provisions of Section 24 of Chapter 190 of the Acts of 1982 as amended by Section 4 of Chapter 701 of the Acts of
1986, and out of available funds on hand July 1, 1999, as certified by the Director of Accounts under said Section
23, and the balance of said appropriations to be raised by taxation pursuant to said Section 23:

> 74 — 7 '
eae” YoT20s8 40 YTIO -
rs. ee |

#9, ‘saed? 9:1) 10) wai aT ba adiieiiaewn /
0065, OC saul calbes bas CVRE Lf ylul geboneotae > nr; #

| CINTA Te

SAHOO TeSy WaoRit Ai? Of Inte LO vinwe acd bas Hore lo yilD se seenegee (come? sift Issnt a2 iat 1 -
HG V4 TUE ASiuberiog SH hs hailloage youotn to 2atue oviloees eds OOOS OF s_| penn mig RROT f Yet
TOMO Dis thisod ovitosqess SM) 16. nobUSeTtb ad? rst mba 10h total TIMI dvred same art bis od
hein Vilwiwal awstenay 9) 159%9 bag boaaraiesh iienlared een ig shige jerivse : n betioeu yi iorwae -
gcHinq to noiemdo bie somensiaiam 8:9 10) 915 yor) nities wl) 01 zndiiaite {7GCk Gus Vind see0G WA Leaded ay) :

30 1 Gonitsied ¥ dared 41 Molva) » ers) dasiionl euisPrivne rete baw gab "io Sobelugs? 6%) Drip Sealer
S2OTTUuIY 3310-201 Sis Yo snsixs saci Ons cram gad mod siesta sci Jo wo aber anied UD, O01 q
m <ocqmebo si £23 a10T) valsss? bie enoizzonwed sl) es 10 of92 al! mo t 2hsso01g So) he vo stem Sar ,
goiboion? Ona os qo vel .f viul mio’ bejcslina vu WY, tN 10 T9¥4) vi squzy iencereg bus lzet tno! ad) Gt aol t a
i Dip Awet lewa® oto Ue wget lo ES noltass taban Toho A yO ant vd UsAyea ee CCC LE domi

0 Gf Togarutig 000.90, 12 basoxe of a jawoma da ai bere Warn sd 6) ste agouy tulqus lo sige oi moi] abeadany
10 213A wih lo TOT iain Io 8 aoiined vd bobmame 26 TRE! Wo ars adr ta 00) imqed? to 4. -nplins’d jo enoial Org /
Nue22 Dine oboe waa 10 JoreniCl ocif ye befinan ve P00) .f ylul Suse 10 ebant shistions to yo ne ,O8@% x
t nots? bise oF meuewt] dolasas vd hseigi 36 0) 2aq)hgo1gde bine to sankiad ort bia ES ‘

—_

96S'F16 0

002'21

008'1S

96S'0S8

juewipedeg juewuoNAURZ = EOEO-E0E-1 10
y9E'L69' LL 0 0) 0 000'rr 996'09Z 098'9S 1 €S2'026 S82'608'6 \deq seojeg jeuojjoedsu| 0920-192-L10
L8€'SS0'L2 0) ) ) p9e' PBZ Ovg'zez 69r'zee't 990'6r6'Z 8r8'9SZ'91 juewpedeg uoyeyodsues) 0000-12-10

SOd|AIOS JEJUEWIUOIAUQ
OLL'822'9 0 0 000'6€1'9 0 0 0 0 OL1'68 puny yno, 8hb0-8rr-LLO
9€S'26E'P 0 0 000'0S0'r 0 ges'cre (0) 0 0 jeAOwWey MOUS LEGO-LEO-1 10
Spl Lie'h 0 0 0 000'Ft CEL LOL 00S'SEZ 000'6r1 eLS'LGZ'b SoUuBUEUleW jeo}]+4 je4JUBD L8LO-LBL-LLO
Lve'y8s'e9 0 000'002 0 008" t BE L'O0E' O0€'b26 896'9b6' br LPL'LEZ'OL juewipedeg som 919Nd LLEO-LLE-LLO
ZZL'9€S' LL (0) 0 0L6'928 000'02 COL'LbS 00S'88r 000'0r LZ 661'0zS'Z juawipedeg Uo}jee10Y B Syed LO€0-00€8-1 10
OZk'L66'SL 0 0) 0) SOs'rl Svs'00r g1e'seZ 61E'199'p Sep'6zl ‘Ol juaweHeuey Auedoidg 080-081-110
Z9€'l€8 0 0 0 OSZ'Zk SZO'l OLY’ LL 096'8r CLE ZGL uolsiAig Aijsibey E9LO-E9L-LLO
Srb'0ee'e 0 0 0 B0r'l L80'2Z 02Z'992 20S' ble vel's99'2 juswipedeg uoj}}9e/9 0000-1 2b-LLO
1020p 0 0) 10) 00z'Z 000'E o0s‘€ 00€'ze 10Z'9SE Hujsuady] P Sule} JoUINSUOD VLLO-PELL-LLO
992'66S'S2 0 0 0 OSP'SEZ 999'0€r 220'680'E e26'SZL'b 90Z'BLZ'ZL juewpedeg Aresqr] OLLO-OLE-ELO
: SOd|A1OS Djseg
£0€'PI9't 000‘'80¥ 000'S2 286'¢ 00s'2 S89'€69 lel 'cer WsUNO] BY SjUeAR jelNedS SlvO-SIP-LLO
626'8lP 0 0 0 0 002 000't 00S 6e7' LLP Ad|0d Gor sjuepisey Uo}sog ZSLO-OV1-LLO
88e'rbS ) 0 0 0 000'! 00S'S eL9'Z2h SLL'OLY sseujsng uawoyyAoUul) =: 9GL0-OFL-L LO
yueuldojeneg sjWoUu0[g
eLy'Se6'Stt 0 0 0 00S'¥Z8 808'6r6'2 000'9S0'E Or9'61L2Z'E yeS'8ee'Sol juewpedeg ej L220-b22-L tO
925'256'0z ) 0) 0 86Z'0ee'l LZ0'SZz'O1 p07'96'S 02S'SOS‘ LL €6'z8e'bZh juewipedag ed\}og LLZO-LLZ-LLO
Ayejyes o11qNd
000'008'S 0 10) 000'008'S 0 0 0 0 0 A\ld - seyinuuy »y suojsueg ylEO-ple-LlO
000'001'r 0) 0 000'00L't 0 0 0 10) 0 SUNOD JO UO!NIEXA CEECO-CEE-1LO
SLO'erk' 0 0 000'2 0 Glo? 000'lE ose'8rl OSZ'bE6 uoysiaig Buyseyound 0000-0F1-L1O
898'862'2 0) 0 0 008 £09'62 00€'6 002'26Z SOP Lop't juewabeuey jeipng 0000-0FI-tLO
0SS'126'2 0 0 0SS'126'2 0 0 0 0 0 sjuewAed e1eo|peyy 6E10-6EL-LLO
865'SS8'2 0 0 000't 006 OLp'8z 8L6' PEE oze'0St 0SO'Ore'z juewipedeg Ainseal) 0000-ZEL-LLO
269'96€'S 0 0 0 000'01 9v9'E7S 0S2'0S OOr'8Er 966'PZE'b juewpedeg Bujssessy QELO-9EL-LLO
Z8\'Lev 0 0 0 000'2 OSr'l 000' LE 00S'22 L€2'S9e eouR|sissy Pg /eUOJoy 40Aedxe] pELO-PEL-LLO
L€e'286'e 0 0 0 000'éet Lee ly ZL8'€€ 961'Erl LZLO'LSZ'E juewipedeg Buyipny LELO-LEL-LLO
4B91JJO JEJOUBU]Yy Jo}YD
000‘00r'E 0 0 000'00r's (0) 0 0 0 10) puny uoljyesuedwiog ,sioy10/M ChEO-LVE-LLO
000'0S ¢) 0 000'0S 0 0 (0) 10) 0 uonesuedwog juewAojdweur 6610-661-110
000'S2z 0) 0 000'S22 0 0 0 0 0 puny juewebeueyy SLLO-SZI-LLO
820'0z6'8 0 0 0 000'8S 1 662 L18'h 008'692 0€0'r26 6¥6'9S1'S SAG UO)EUOJU PY jUBWeBeUeYY 0000-0F 1-110
000'00€'18 0 0 0 0 000'00€'18 10) 0 0 eoueINsU| YyeoH 0000-0F I-10
SSr'616 0 0 0 008" Lz 006'rt 00s‘ br9' lez LLO'ES9 suojejey 40qe) 0000-0F I-10
€SZ'ver'h 0 0 000'OLt 0 LS8'€2 00Z'91 002'881 96'S60't juewpedeg spy o1yde5 0000-0F1-110
666'1S6 0 0 0 000'¢ 00S 000't 008'Ert 660'€08 4991jO Buyyesedo jalyo 0000-0F 1-110
€S0'912'2 0 0 0 0 SS6'Z8 Orr’ le €ly'6St Gre Ler'z seoinosey UeWwINY 0000-0F 1-110
499}J0 Buyesedo jolyo
LEZ'6L6 0 0 0 0 0) 008'61 0029 LEZ'€z8 SBd|MBS pooyoquBbjen ZLVO-ZLY-LLO
959'828 0 0 0 00S'S osZ't vOL'LE 0S8'8S eSb' lel UO}PEUNOJU] OIGQNd 0000-1 b-LLO
189'SL2'p 0 0 0 009'€01 Z0L'99 1eZ'v9 €52'082'1 S6r'002'2 juewipedeg Me} LGLO-LSE-LLO
S62'S16 0 0 0 000'01 vBl' vel 000'8 bLo'pet L6b'88S SUO}EJOY [EJUGWILAACHiE}U] 0000-0r1-LLO
269'LbS 0 0 0) 000°} €22'9 000'8 Lee'elz2 8E1'092 9 0} 2 UO|sSOg QLLO-OLL-LLO
OLP'0z8'L 0 0 0 000'0! 000'8 006'0S 008‘ rz OLZ'€0S't 891jJO SHoAeyy LELLO-LEL-LLO
e210 ssokew
[BJO] yueweAosduy| s}uoweAoidul) uopeyidosddy juowdjnby suonebyjqo 8 sjepoyey S89|AIES SE9|AIES

jeanjonays-uoNs-B jejoeds seBieyd
puey seinjonas yueung

2 sajddns jenjoeaquod jouuosied SINSWLYVdad ALIS

G53, 590,008

Svh.scearr

BES, bad
ee bth
£06,737

Bt eee 2s
t8t,008
ape dere

wsAece & oo a

So ace ocd co

2 so

“ese ogpoc qc >

cco ©

coc 2

Ce
-—

2 «¢@

fro D8
af

mot
030 0°76
ey) Coa

=; Rete Hide

-~
~

rs60.<V6.01
Bon, 2ho >

es mt __seatre b.

ra,Vat
(2
BRA ite

S70, 257.A

ES |
casts |
ong As

O96, 120.!

it 473 he 2 aS

022,000,n8
000.004

G86 GTS%

retrial
be eee

oT 3

O68 527 8!
28S, 3,8
Ee? a)

0L0'e89'r

OLO'eBt'y

000'00S

syueweAosduy|

120]

992'086'S7L

000'000't
000'0z8't

9b b'ObS
OLZ'ELL
080'9E8
986'0€E'S

os6'esz
1e8'Zel'b

899'L9b'LS

662'6€S'2
961'0SZ
Sle'vSt

L6L' Zep
0L6'S9P
6rZ'ESE'2
Lpe'zos'el
9€0'ZES't

|B)0])

0
yueweroiduy|
jeanjonajs-uoN

pueq

oeoooo oc &

jyueweAolduy|
jeanjyonss-uoNn
pue?y

8
SeANyonsys

000‘002

oooo

ooooocqoco ©

SOINJINAS

sjusweAoiduiy

020'€89'b

OLO'e8 lv

000'00S

uonelidoiddy

jejoeds

886'866'98

000'000't
0)

ooo °o

g99'L9b'LS

jejoeds

uojepidoiddy

yuewdjnby

Zer'lLLe'e

0
0

osZ'Ol
002't

000'0!
000'S8

0)
LOL'vE

juewdjnby

suonebyi\qo 8

seBieyo
yueUND

L92'000'SOL

0
0

006'b
S2p'h
vOl'r
os¢'ce

000'9
262'COL

00S'12S't
000"
00S

000°!
089
bye'6rl
Lbe'2bp
000'€

sebieyod
yueung

SuopeByiqo F

sjejioyeyy
» soyjddns

976'878'L1

0
0

000'21
O£0'L

00s‘81
000'SP

000'S}
g9z'8lt

000'2
000'lt
002'}
008'r
o0s'Z
0SZ'98
000'SSI
00s'Zt

sjepoqey
»» sojjddns

SOD|AIOS
jenyoesuog

602'680'E6

0
0

000' 1
GlE'S
002'€S
000'922

00S'0S
910'OLZ't

009'S8I
008'r0e
00b'6
006'eZt
002'SE
S69'L12
008'Z1e'2
¢29'S6

Sed|MleS
jenyowauog

SOIjAIOS
jeuuosied

pre o6r'6ly

0
000'0z8't

992' 18h
o89'r9l
9Lt'6EL
9ES'2r6'2

OSP'ZtZ
L02'€01'2

669'SLZ
966'12r
Sizer
L6b' Lb
060'22r
£96'668' 1
000'0f ‘OL
216'ZSS

SO9|AI@S
jouuosied

SINSAWLYVd3ad ALNNOD 1VLOL

\deg syjueys Ajunod y}04jNS

Ajunog - seyinuuy y suojsued

SINSWLYVd3d ALNNOS

SLNSWLYVd3d ALIS TVLOL

OAIBSAY UO}JU9}OY YSIY
BujureGueg eAioe||0D 40) eAuesey
4010

pueog BHujsues;q

UO|SSIWJWOD edUeUl4

49}0 AO

younod AND

sjueuniedeg jeioAey-uon
J9\UaD edInoseY BHulsnoH jejUuey
juewidojaneg pooysoqubiey

Aeg pooysioqyuBjey » Bujsnoy
UOISS}JWIWOD YyeaH IN/GNd
YWEEH I1GNd

juawpedeaq sedlAlag suelaje/
SALEBY JEANIND

UOISSIWIWIOD S,UBWO/AA
UOISSIWIWOD Jeyeys Aouefiewy
siyBiy WIND

uolssIwWwOog Apep|y

si9ajuag A\junuiwoD u0\sog
diysiauped Ayjunwwog
Sed|AJeS UBWINH

SLINAWLYVd30 ALIS

LL80-Zb2-FLO

SLEl-6bL-VL0

0000-0F 1-110
6666-666-110

cS¢20-cS2-b tO
€6L0-C61-1LL0
LOLO-LOL-LLO
CLLO-CLE-ELO

p8EO-rBE-1 LO
0000-881-110

0290-029-1 +0

byZO-ObZ-1 10
€0S0-€0S-1 +0
LLvO-LZbb-LLO
90b0-90b-1 0
£0v0-E0h-110
28€0-Z8E-110
0610-881-110
GLLO-GLI-LLO

' Pe is +
ULf2.¢
Ove 2p
re? 70a
erepor
hMroey

evl.ce2.s
2 Yep. t2

PRESET b
TREAT

000,000, 1

G3¢.6u2,.08

Sta, fTe#

FURTHER ORDERED:

Il. That to meet so much of the expenses of maintaining, improving and embellishing in the fiscal period commencing
July 1, 1999 and ending June 30, 2000, cemeteries owned by the City of Boston, or in its charge, as is not met by the
income of deposits for perpetual care on hand December 31, 1998, the respective sum of money specified in the
subjoined schedule be, and the same hereby is, appropriated out of the fund set up under Chapter 13 of the Acts of 1961
the same to be expended under the direction of the Commissioner of Parks and Recreation:

015-400-3321

Cemetery Division
Parks and Recreation Department
Personal Services $1,636,159

| HEREBY CERTIFY T
HAT
Tis FOREGOING, IF PASSED IN
THE ABOVE FORM, WILL BE IN
4 ACCORDANCE WITH LAW.

ets

MERITA A. HOPKA)
- HOPES
CORPORATION COUNSEL

4 ) uf |

asl s 7 -
oy i
7 aa)
oP
it
he
ee eo

' 7
CTAIGAO TSH TA
SAioAsnim02 bet Lavell ort al gaideilfedurs bux antvorjgah yoigisiaien: to soeneqne sat te cova o« eam ome EB
50) Vd 1601 109 2) ae aqrert ett ui TO 209208 Ww yD ods ¢) bouwo 2oioremes .OOOE OF sau! gnidnas One OPO) ff byt
sii ai befiosqe yonon io rive aviideqesr oft 2001.16 wontsso%) ined no su lAiagiog 10} atheoqsb lo aaeaal
FOUL Io 210A 5%) to £1 waged) 15Dnw qu tog Dew) sc to so bolahyomgs ,c2 vowed wm sd oy od siubedios benione
ORSON Mts wie To reclaninmod st Yo aviiasi set webay bohmoges Sd oF saneg i

I SEE-O0: 210
soleiviT yang

msarreqnd acinsro31 baw et
G2 L.DED. 12 esr Isacant

CITY OF BOSTON ¢ MASSACHUSETTS

OFFICE OF THE MAYOR April 13, 1999
THOMAS M. MENINO

TO THE CITY COUNCIL
Dear Councilors:

I transmit herewith an appropriation order for the Boston Public Schools for FY00 in the amount of
$573,944,785, submitted pursuant to the provisions of Chapter 224 of the Acts of 1936, as amended by
Chapter 190 of the Acts of 1982, as further amended by Chapter 701 of the Acts of 1986, Chapter 613 of
the Acts of 1987, and Chapter 108 of the Acts of 1991.

Improving education throughout Boston requires a united effort by students, teachers, parents,
communities, schools, and private businesses, along with City and State officials. This budget, which is
$30.9 million larger than FY99, continues my commitment to improving education. Since my first budget
as the Mayor of the City of Boston, funding to the Boston Public Schools has increased over $165 million,
or over 40 percent.

The FY00 operating budget funds many new initiatives critical to the success of “Focus on Children,” our
five year plan of reform, including:

A comprehensive literacy and math program with transition services;
Grade 2 class size reduction;

New textbooks and instructional materials;

Operational support for technology in the schools;
Recommendations of the Alternative Education Taskforce; and
Professional development programs.

SA A A A ad

My commitment to schools is also illustrated through the City’s Five Year Capital Plan. The City of
Boston FY00-FY04 Capital Plan includes approximately $234 million for school projects including design
and programming study for a new K-8 school in Orchard Park, as well as a school siting study for four
additional schools in Boston.

The Boston School Committee and the Superintendent have submitted a budget that balances competing
priorities within available resources. This budget provides our students with the tools necessary to meet the
standards that have been established by the Boston School Committee. I respectfully request your support
of the FY00 appropriation for the Boston Public Schools.

Sincerely,

EG lm

Thomas M. Menino
Mayor of Boston

BOSTON CITY HALL ¢ ONE CITY HALL PLAZA * BOSTON ¢ MASSACHUSETTS 02201 © 617/635-4000

® Teor

CT TaAcUHDA2ZAM © MOTEOS 10. *ThQ

OPOl £1 Taga SOYAM SHY IO Soro
OMIMSM .M CAMOHT

JIOVUOD YTIO SHT \

20foag) wa a

Yo saomte ad) at OOYS wi eloorise vildu4d aoleod sn) sot wbyo noite oye na iwsted pn
yah shown af OC! lo 2A oc Yo ASS taiqgedD to anolalvony sdi of pagliow bottimaue 22%, bho tY
to £10 watt ABE! Yo 210A oct to TOT t0jaNc > yd bebrrseis volt 22 S80! to err, ott to OCT sggede )
[GOT tO aod art to 80) migqedD bas Tae! lo mA oe
AINSI8G .zVI6S) .2lnsbure yd Nols betes & zoslupet aoteod wodguowlt.codsouby prive pone ql
2i doliw Jogbud 2! clsioiiio siete bow iD ciiw goles cseesniawt siaviny bag 2logiive 2sRiauaey
joghud jeri vil soni? .nolegutt yiive mL Ni OF Jaeawiowtoo Vitt 290 NO POTS nett toyl noillion &
noitiin 201g sve Seassonl 2a eloorod oildu nomod adi oj exibsy! aorotl lo yilD.err to ca ah
~ snsoraq OF eve 4

2202 covlaney AMiw Merwe diem bes yas1si!!l avienorisiqinoo A
MOUoubN tiz velo f sbsiD 4
laisse lanobounieai brs sapere
(Moodle sat ai ygolontios) 21 noqque i
: brut ‘enobanT aobesubl ovismmiih, rit Yo pater ins iminooss

ie pepIngENG mreaquiovsh &

7 to Wi edT alt a ms 9 0 ape oe ot
oylzab goibutoni zuejor loorbse x8 aoltllan HELL Meri; che epg
Tut wt vbute ga on aes vn

os Prelate a tale sets Soe ea
patie lated hevdak pads hares

8 a 108 no 4 iP ad

CITY OF BOSTON

IN CITY COUNCIL

ORDERED:

That pursuant to Chapter 224 of the Acts of 1936, as amended by Chapter 190 of the Acts of 1982,
and as further amended by Chapter 701 of the Acts of 1986, Chapter 613 of the Acts of 1987,
Chapter 108 of the Acts of 1991, and Chapter 150E of the Massachusetts General Laws, to meet
the current operating expenses of the School Department in the fiscal period commencing July 1,
1999 and ending June 30, 2000, the sum of FIVE HUNDRED SEVENTY-THREE MILLION
NINE HUNDRED FORTY-FOUR THOUSAND SEVEN HUNDRED EIGHTY-FIVE
DOLLARS (S573,944,785) be, and the same hereby is, appropriated, said sum to be raised by
taxation pursuant to Section 23 of Chapter 59 of the General Laws:-

School Department $573,944,785

| HEREBY CERTIFY THAT
THE FOREGOING, IF PASSED IN
THE ABOVE FORM, WILL BE IN
-~ ACCORDANCE WITH LAW.

MERITAA.HORMNS ?
CORPORATION COUNSEL dM Lf

; <TSAS UNO

A8Q1 20 aA ont 10 OP! zsiqeiD od Gabasm ae EC! Yo 2A sr) Yo ACS sIQedD Oo) tnswrwa sefT
S22! 192A ait to £14 wigedD O82! lo 215A si to 10T tet1qadD ¢d bobnams sith 2% bate
Isai oO) twat tomact) eisuidoiszaM of) 1o HOE! watysd bas Lei to 290A st lo BOL wget

A ylut gaisaommo? bonsq (aaah at at ieomaec lootn’ an) io tazaoqks galteteqo Morus) out —
ViOLLIIM HSSHT-YTVAVa2 CAACMLIM SVP Yo swe 94) OOT OF saul gaits bas C0¢!
SVP-YTHON (SE 4ACMUH ASVae CVAZUOHT 4AUCA-YTACA GAGA AIM

vd beaial o¢-0) moe bies .Dolsihgorgas .2) ydoved saraz oft bone od (28) + PV22) 2AA LOU
~\twe.l levonst) S21) lo YE wigsd2 to EL noliosé 0) jneyewey nolexsl

CBT B50. F072 fomnsieqed foods?

7 si a¢
® | ; . :
TAHT YAITASO VeaRaH) : ee . oe
; 4) 9322A94! QMCRAAOASHP a he en al
Vii 29 LNW (MROTBVOBA SHE Data Ie ens
WAL RTIN BD ; 7 ieee:

c Ga il
Ne SS J

ae alas ea >

mq \y _ in
- 7

_
7 aa
en Cee -

CITY OF BOSTON ¢ MASSACHUSETTS

OFFICE OF THE MAYOR
THOMAS M. MENINO

April 13, 1999

POWTHE CriyireounNcie

Dear Councilors:

I transmit herewith for your approval an appropriation order in the amount of
$15,000,000 for the City of Boston’s Pave the Way 2000 program . The Pave the Way
2000 program will raise the general condition of all of Boston’s roadways and walking
surfaces over a two-year period.

I urge your Honorable Body to pass this order.

Sincerel
ZW lam
Thomas M. Menino

Mayor of Boston

BOSTON CITY HALL ¢ ONE CITY HALL PLAZA ¢ BOSTON ¢ MASSACHUSETTS 02201 © 617/635-4000
ergeyen

STTI2HOAZEAM © MOT2O8 90,1119

AOYAM AHT IO SaFA0 <=.
OVIMEM .M €AMOHT

S01 C1 lingA

TIVOOANTID AHP OT

; ‘erolionuoD aint
to inven or? ai rbie notangorqas os levorqge wiry 101 Aiwered timenst 1 a.
im sei aya sdT . mergorq QO0 on ami svp4 2 noleod Yo vitD sit 101 000,000,212
yntilew bre eyiwbaor e'noiod Yo Ils to nottibnos Isrensg od} seies iw mergomq NN0S
boireq —, £ 73v0 aes

ohio 2iti) esq 0} Cb sono way gn

CITY OF BOSTON
IN CITY COUNCIL

ORDERED:

I. That the sum of Fifteen Million Dollars ($15,000,000) be, and hereby is,
credited from two special revenue reserve accounts to fund Street Openings, to the
Capital Fund; and be it

FURTHER ORDERED: |

II. That said Fifteen Million Dollars ($15,000,000) be appropriated from the
Capital Fund to be expended for the purpose of the Pave the Way 2000 program, a two
year program to strategically target arterial, collector and neighborhood roadways to
improve the general condition of the driving and walking surfaces of the City’s roadway
system. Seven Million Five Hundred Thousand Dollars ($7,500,000) per year for two
years will be allocated to repave and improve such roadways throughout Boston’s
neighborhoods.

| HEREBY CERTIFY THAT
THE FOREGOING, IF PASSED IN

THE ABOVE FORM, WILL BE IN
H LAW.

MERITA A. HQPAINS A ,
COREORATION COUNSEL C7 J Zp

oe oe —° -*
7 ; i
— ” _ :
,
tS
CAANIAHO
at yeoisd brs od (000,000.21; 2) erallod nolliM asaitii to muse act tact) J 1) 7

orl? 08 2gniaoqO teant2 botit of etwo20e svieast sumo) |s!290q2 ow) mot beribsro.
ii od wich uw istiqeD

1 A4CHAO AFZHTAUT
91) motl batangomyqe of (000,000,¢12) exsiiod: noillilM mys Line dT To”
OW} & ,comrgeny QUOS qn ath ve") ori? to seoquug silt tot bobusqs od of baw latiqed.
9) evewbact, boaorodigian bas 1orsolloo ehons jogiei vilecigoie 2 of mesigoIg easy ©
vewbsor evi salt to esoatue godilew bas gnivicb silt te aoitibucs levsnsg sit over ©
wi Ich wey 19q (000,002, 6%) exsliod baszwordT berbavH wil aoilliMagved oo rae:
2 noleod nrodguomt eyawbeo dove evorgmi bas sveqn of botssolla od Lliw amy

TAHT Y3ITAGO vaaAay |
V1 932249 3 OMI0
Mi 30 JUIW .MRO3

ate bi SRO rs

CITY OF BOSTON - MASSACHUSETTS

OFFICE OF THE MAYOR
THOMAS M. MENINO

April 13, 1999

TOT Gtr COUNCIE
Dear City Councilors:

I transmit herewith for your approval an appropriation order in the amount of
$4,395,000 for acquiring land, or interests in land, for any purpose for which the City is or
may be authorized to acquire land or interests therein; and for the construction of buildings,
or for additions to such buildings where such additions increase the floor space of said
buildings, including the cost of original equipment and furnishings of said buildings, for the
purposes of the Police and School Departments.

I urge your Honorable Body to pass this order.
Sincerely

Thomas M. Menino
Mayor of Boston

BOSTON CITY HALL ¢ ONE CITY HALL PLAZA * BOSTON ¢ MASSACHUSETTS 02201 © 617/635-4000
2 Bion

cas

OO ni sn 2 en eentnd none

eT TEAOHO ARAM VioTeDd 70 rr3

BOYAM SET 40 SRO >See
OWINEM. .M 2AMONT |

PRT EI lnqa

“ HOMUOS YTIO SHT: oT
-e7olionuoD wid 590

ies

To Intioma o18 Ai ybr1o nonsiquiqge n= laverqas toy 1 tulwouddl itevaney T “ .

0 ef iS ani doiriv’ aot seoquuq Ys tot baal ni etastated 10 .basl gnittinpos iat 000,206 4

egniblid to novoumenos oi 101 bas ynisted) eesisini 10 boa! rivpos of bathodiug $0 rT

bisa to sosqa 100ft on} sessisni anouibbe dove siadw egnibliud dove oY =apkibhe a oO 6 6)
or!) 10! 2gnibliad bise to egnideinn? bas tnomgivps lanigizo to 109 oft gnibulani .ewniblind
etapensmsged loosts2 bor soilot onl 20 2900 nny

es :

a”
sabe aire 2e8q ot ybod tine Sux T : aim

CITY OF BOSTON

IN CITY COUNCIL

ORDERED: That the sum of Four Million Three Hundred Ninety Five Thousand Dollars
($4,395,000) be, and hereby is, appropriated for acquiring land, or interests in land, for any
purpose for which the City is or may be authorized to acquire land or interests therein; and
for the construction of buildings, or for additions to such buildings where such additions
increase the floor space of said buildings, including the cost of original equipment and
furnishings of said buildings, for the purposes of the Police and School Departments; and that
to meet said appropriation the Collector/Treasurer be, and hereby is, authorized under the
provisions of Clause (3) of Section 7 of Chapter 44 of the General Laws, to issue from time
to time, on request of the Mayor, bonds, notes or certificates of indebtedness of the City up to
said amount, provided that the appropriation authorized through this order be expended only
on those projects as described by name attached herein.

| HEREBY CERTIFY THAT
TRE FOREGOING, IF PASSED IN
THe ASOVE FORM, WILL BE IN
Zz, ACCORDANCE WITH,LAW.

MERITAA.HOPKINS |
CORPORATION COUNSEL C7)) (>

Attachment

1. Charlestown Police Station
2. Mission High School
3. Site 4 New Schools

CITY OF BOSTON - MASSACHUSETTS

OFFICE OF THE MAYOR
THOMAS M. MENINO

April 13, 1999

POPHE ClhyY COUNCIL
Dear City Councilors:

I transmit herewith for your approval an appropriation order in the amount of
$28,385,000 for remodeling, reconstructing, or making extraordinary repairs to public
buildings owned by the City, including original equipment and landscaping, paving and other
site improvements incidental or directly related to such remodeling, reconstruction or repair
for the purposes of the Community Centers, Fire, Management Information Services and
School Departments.

I urge your Honorable Body to pass this order.

Thomas M. Menino
Mayor of Boston

BOSTON CITY HALL ¢ ONE CITY HALL PLAZA ¢ BOSTON ¢ MASSACHUSETTS 02201 © 617/635-4000
© eon
ik) Printed on recycled paper

Afec Amer

ROTAM FHT 9QO FORA
{. Charlestown Police Staton . OMTMSM . PAMONT .
2. Misseorn High, School
3 Site 4 Newy ot \Oals

“ROOT 21 lingA

TOKUOO YT SR
‘erolfonurg’ vit

to jauoons sift i 1whs0 notteiqoiqys rin Levorgga wor 16t diiwered simenst EF

vildey of aiaqe ‘qeniinomuxs guide 10 .gauowrdenolst , gnilsbomst 161 (00.286 7 Ae |

vedio 68 gaiveq goiqnszhasl brs tramqisps leaigino gaibuloai , vri’) eel yd bonvwe e nibs

, a 170 molutenoes: gailebome: dove of hatsies vitesiib vo lenesbiont 2tnsmavorun on
baa escivisé ncvarnadin JosmogensM sf 218309) YiodmunoD sclt'to 2evequuq 9

tiasinmaqed ke 0 oe
-t9b10 aie) 228q 0) ybotl senere woy sguy t

7 ;
i

CITY OF BOSTON
IN CITY COUNCIL

ORDERED: That the sum of Twenty Eight Million Three Hundred Eighty Five Thousand
Dollars ($28,385,000) be, and hereby is, appropriated for remodeling, reconstructing, or
making extraordinary repairs to public buildings owned by the City, including original
equipment and landscaping, paving and other site improvements incidental or directly related
to such remodeling, reconstruction or repair for the purposes of the Community Centers, Fire,
Management Information Services and School Departments; and that to meet said
appropriation the Collector/Treasurer be, and hereby is, authorized under the provisions of
Clauses (3A) of Section 7 of Chapter 44 of the General Laws, to issue from time to time, on
request of the Mayor, bonds, notes or certificates of indebtedness of the City up to said
amount, provided that the appropriation authorized through this order be expended only on
those projects as described by name attached herein.

| HEREBY CERTIFY THAT
THE FOREGOING, IF PASSED IN
THE ABOVE FORM, WILL BEIN

yy, A ee ul LAW.

Attachment

—_
OOON OOaAABRWHND =

—_
—

ay cary
& WN

. Hyde Park Municipal Building

. Mirabella Pool Bathhouse

. Nazarro Community Center

. Tobin Community Center

. Vine Street Community Center
. Engine 51

. Central Kitchen Roof

. Madison Park High (Humphrey Center)
. South Boston High School II

. Taft School Il

. Technology Upgrades FY98-01
. Timilty School

. Young Achievers Pilot School II
. MIS Computer Room, 103

CITY OF BOSTON - MASSACHUSETTS

OFFICE OF THE MAYOR
THOMAS M. MENINO

April 13, 1999

TOMHE Cry COUNGIE
Dear City Councilors:

I transmit herewith for your approval an appropriation order in the amount of
$3,550,000 for the purpose of the cost of departmental equipment to service the Inspectional

Services Department.

I urge your Honorable Body to pass this order.

Sincerely
ee Menino
Mayor of Boston

BOSTON CITY HALL ¢ ONE CITY HALL PLAZA * BOSTON e MASSACHUSETTS 02201 © 617/635-4000
© Bon

nm
& J Printed on recycled paper

' - 4) - : ry :
res }
rd a :
a
7 - ;
'
; CF
Attactunent :
re ST YI UHIAZZAM + Wior2os 70X79
; AOTAM ANT IO 2DFTH0 — Ax
| Hyde Park Municipal Buildin MIMaM .M 2AMOHT :
2 Mirtibefa Poo! Ba\hnouss a"
3. Nazarro Commninity Carter 4 | » ae
4 Tanit Gonmnunhy Cante
s) Ving Street Comvrraswity Darter
6. Engine &7 ROUT 21 tnnA
7. Central Mishen oot . “ @
&. Madison Park High. (Humphrey Gert ¥ a
% South Boston Highs Schoo fi “‘WWUOD ¥TI9 JHTO
10. Tah Seno: ti 7:
+ Technolgy Upgrades FYS6~<11 ‘erolionued aid:
Tt... Timilty Saheat
T. Achiovers Piel Schoo : :
‘A sige 3 Seo ilag-polsng cigs ar ie VOWS WWOY 10; Airvws ousid tennant I
isioLosqent Sd} saivise 0} Jnoma@iups laiaemnagsb to seve 211} 10 szocqusq aait 101 000,020
JastnneqeG 295!
ebro ud? ees oF yboti sidsionoH woy saw I

vigrmonie

onirs 4M eamiodT
noteo# io wy

CITY OF BOSTON

IN CITY COUNCIL

ORDERED: That the sum of Three Million Five Hundred Fifty Thousand Dollars
($3,550,000) be, and hereby is, appropriated for the cost of departmental equipment for the
purposes of the Inspectional Services Department; and that to meet said appropriation the
Collector/Treasurer be, and hereby is, authorized under the provisions of Clause (9) of
Section 7 of Chapter 44 of the General Laws, to issue from time to time, on request of the
Mayor, bonds, notes or certificates of indebtedness of the City up to said amount, provided
that the appropriation authorized through this order be expended only on those projects as
described by name attached herein.

| HEREBY CERTIFY THAT
THE FOREGOING, IF PASSED IN
THE ASOVE FORM, WILL BE IN

ACCORDANCE WITH LAW.

Af ( Cy Z, (i .
MERITA A, HOPKINS
CORPORATION COUNSEL -

Attachment

1. Automated Permit And Inspection System

S\, CONDITA AD. S/Zy
Wee,

1630. ANE
one WL

CITY OF BOSTON » MASSACHUSETTS

OFFICE OF THE MAYOR
THOMAS M. MENINO

April 13, 1999

POSH ClyY COUNCIE

Dear Councilors:

I transmit herewith for your approval an appropriation order in the amount of
$470,000 for developing land for burial purposes and for constructing paths and avenues and
embellishing the grounds in city owned cemeteries.

I] urge your Honorable Body to pass this order.

Thomas M. Menino
Mayor of Boston

BOSTON CITY HALL * ONE CITY HALL PLAZA ¢ BOSTON * MASSACHUSETTS 02201 © 617/635-4000
© BO

ceo
& I Printed on recycled paper

gute
.* 2/7 a

20 TAQUHDAGZAM + MOTROd 40 {TID

ARachrent

| HOY AM SHT IO ZOITIO eed cae
1. Autorratied Pamnit And ince net eae
G04 Ef lingA
es ng W
JiDMUOO YT19 SBT OF
ae

- >
| - smolmmoD me
to invoms orl ni isbro aeitaiageryqe as Ievoiggs woy i0t dtiwored uimensad bo
hrs zouneve bre ated gnitointenos 16% bas eseoqusg laid it bnel gniqolsveb r0t COO0THS
zsiviomes herwo wiv ai ebaverg sd gnideilisdeas:

vate ait eapg 0} 7bo4 aidsronoH NOY ogi I

_ssQIQ oes

onias .M gteodT
1 Beiz08 To 10ysM

CITY OF BOSTON

IN CITY COUNCIL

ORDERED: That the sum of Four Hundred Seventy Thousand Dollars ($470,000) be, and
hereby is, appropriated for developing land for burial purposes and for constructing paths and
avenues and embellishing the grounds in city owned cemeteries, under the management of
the Parks and Recreation Department; and that to meet said appropriation the
Collector/Treasurer be, and hereby is, authorized under the provisions of Clause (20) of
Section 7 of Chapter 44 of the General Laws, to issue from time to time, on request of the
Mayor, bonds, notes or certificates of indebtedness of the City up to said amount, provided
that the appropriation authorized be expended only on those projects as described by name
attached herein.

| HEREBY CERTIFY THAT
THE FOREGOING, IF PASSED IN
THE ABOVE FORM, WILL BE IN

: ACCORDANCE WITH LAW.
f.” 9 = /

Attachment

1. Fairview Cemetery Garage Building
2. Historic Cemeteries FY00
3. Mt. Hope Cemetery Chapel

CITY OF BOSTON » MASSACHUSETTS

OFFICE OF THE MAYOR
THOMAS M. MENINO

April 13, 1999

TO THE CITY COUNCIL

Dear Councilors:

I transmit herewith for your approval an appropriation order in the amount of
$757,500 for engineering or architectural services for plans and specifications relative to
transportation and development plans to be managed by the Transportation Department and
the Boston Redevelopment Authority.

I urge your Honorable Body to pass this order.

Sincerely

Thomas M. Menino
Mayor of Boston

BOSTON CITY HALL ¢ ONE CITY HALL PLAZA * BOSTON ¢ MASSACHUSETTS 02201 © 617/635-4000
© RS 1

n
GJ Printed on recycled paper

Be igdaliy i A . va :
fap 7 2TTSZUHOACZAM © AOT2OK FOITIO
AOYAMA ART WC AFRO eee P
| Pauview Oernetary Garese iy AM M S&MGHT
datonc Cemeteries FYOO

!
32 <i Mone Cemetery Grace!

vee! Tf irigA

(OW YTD a

oliongoD wh
to tavors offs ni tsito noverqoiqggs as Levorga woy it 7 woted timenat i
o? svosion enoitsotiosq2 bas anulq 162 exoivise Imusetisiona 10 ganseaigas sot 002, FER 4
bas tasunsgqed notencgensi? ont yd begensm sd 92 ensiq inomyolsvel:bas sobsnogs oe
MhoduA insmgolevebaA sored adt

“abe girl 2eeq ot vb08 oldmonoH woy sg 1

¥ieywanié

. onteM..M esmodT a
noteod te toys Y

CITY OF BOSTON
IN CITY COUNCIL

ORDERED: That the sum of Seven Hundred Fifty Seven Thousand Five Hundred Dollars
($757,500) be, and hereby is, appropriated for engineering and architectural services for plans
and specifications relative to a transportation study and development plans for the
Transportation Department and the Boston Redevelopment Authority; and that to meet said
appropriation the Collector/Treasurer be, and hereby is, authorized under the provisions of
Clause (22) of Section 7 of Chapter 44 of the General Laws, to issue from time to time, on
request of the Mayor, bonds, notes or certificates of indebtedness of the City up to said
amount, provided that the appropriation authorized be expended only on those projects as
described by name attached herein.

| HERESY CERTIFY THAT
THE FOREGOING, IF PASSED IN
THE ABOVE FORM, WILL BE IN

Vie Wo CE hee LAW.

Mi ESTA A. RORAK: S
CORPORATION We 25,

Attachment

1. Transportation Strategies Plan 1999-2010
2. Fenway Master Plan

ar
=—

BOSTONIA.
Z 5

CITY OF BOSTON - MASSACHUSETTS

OFFICE OF THE MAYOR
THOMAS M. MENINO

April 13, 1999

TO THE CITY COUNCIL
Dear City Councilors:

I transmit herewith for your approval an appropriation order in the amount of
$19,105,000 for the purpose of construction of municipal outdoor recreational and athletic
facilities, including the acquisition and development of land and the construction and
reconstruction of such facilities, for the purposes of the Environment, Parks and Recreation,
Community Centers and School Departments.

I urge your Honorable Body to pass this order.

Sincerely,

Thomas M. Menino
Mayor of Boston

BOSTON CITY HALL ¢ ONE CITY HALL PLAZA ¢ BOSTON * MASSACHUSETTS 02201 © 617/635-4000
© eS :
co Printed on recycled paper

Altschment 7 : bs . .

AOTAN SPT IO BOTIO “ies
1 Trevaxponation Stages PEMGMaM RAMU |

2. Feroway Master Fun

WOOT EI IgA

409. YTIO SHG
‘

. zzolione? Wida

* = a 7 -
to Inuoms $d) ni who aoiienqoiwgs ne levotqua wov 101 Atiwerad timenen J

ritaitiie bre [snoifesos 1oobivo legisiaysn to moitauuenos to seoqipg 313 yt 000,20
bos aoioudenos aft brs bas! to tasmqoleveb bas noivieinpoa sft gribalodi es iilion
mousse bas etw‘l Jnemnotivnd oft to eseoq ug od rot .2siviling) dove to not ouTbanne
BoomnaqeG foods? bas esineD yWiaseme

4
PRs
a]

>,
ie
a

wabro eid vasq of vbodl sldsratoH mey sgu I
{ | " ' “

CITY OF BOSTON
IN CITY COUNCIL

ORDERED: That the sum of Nineteen Million One Hundred Five Thousand Dollars
($19,105,000) be, and hereby is, appropriated for the construction of municipal outdoor
recreational and athletic facilities, including the acquisition and development of land and the
construction and reconstruction of such facilities, for the purposes of the Environment, Parks
and Recreation, Community Centers and School Departments; and that to meet said
appropriation the Collector/Treasurer be, and hereby is, authorized under the provisions of
Clause (25) of Section 7 of Chapter 44 of the General Laws, to issue from time to time, on
request of the Mayor, bonds, notes or certificates of indebtedness of the City up to said
amount, provided that the appropriation authorized through this order be expended only on
those projects as described by name attached herein.

| HEREBY CERTIFY THAT
THE FOREGOING, IF PASSED IN
TRE ABOVE FORM, WILL BE IN

ACCORDANCE WIT LAW.
he ag A MAL:

is = = =
Ss
CORPORATION COUNSEL 97.47

Attachment

. Tennis Bubble

. Schoolyard Improvement Fund

. Open Space Acquisition

. Amatucci Playground

. Ball Diamonds, Ballfield Restoration FY00
. Beauford Playground

. Billings Field

. Boston Common Brewer Fountain

. Boston Common/Public Garden Pathways
. Braddock Park

. Carter Playground

. Children's Wharf Boardwalk Enhancement
. Chinatown Basketball Courts

. Christopher Columbus Park (Waterfront)
. Columbus Park

. Corbett Playground

. Court Renovations

. Crawford Playground

. Cutillo Playground

. Downer Avenue Playground

. Edwards Playground

. Emerald Necklace

. Fallon Field

. Flaherty Park (SB)

. Flaherty Playground (JP)

. Forbes Playground |

. General Park Improvements FY00
. Harambee Tennis Courts

. Hardiman Playground

. Hobart Street Playground

. Independence Square / Lee Playground
. Lambert Avenue Playground

. Langone Park

. McConnell Playground

. McKinney Playground

. Mission Hill Playground

. North End Park / Puopolo Ballfield

. Orchard Park

. Overlook Park

. Parkman Playground

. Penniman Hano Playground Totlot
. Public Garden

. Ramsay Park

. Ringer Playground

. Rossmore-Stedman Park

. Saint Helena Park

. Smith Playground

. Sweeney Playground

. Thetford Evans

. Townfield

. Walsh Playground

. Water System Improvements FY00
. Winthrop Square III

se SES, CG Ry oo Eu Ge re
OANODOAHRWNHD BR DO WOAN OO A WP =

NO NO
— O

AaAankA HAHAHA AAA WWWWWWWWWWNHNNNDYD

CITY OF BOSTON » MASSACHUSETTS

OFFICE OF THE MAYOR
THOMAS M. MENINO

April 13, 1999

TO THE CITY COUNCIL

Dear Councilors:

I transmit herewith for your approval an order to amend an appropriation order
originally passed by your Honorable Body on June 24, 1998 and July 15, 1998 and approved
by the Mayor on July 21, 1998.

The proposed appropriation order would raise the amount from $20,000,000 to
$26,060,000 for the purpose of the development, design, implementation and operation of
computer hardware and software for the city-wide administrative information system for
human resources, payroll and finance functions.

I urge your Honorable Body to pass this order.
Sincerely,

Thomas M. Menino
Mayor of Boston

BOSTON CITY HALL ¢ ONE CITY HALL PLAZA ® BOSTON * MASSACHUSETTS 02201 © 617/635-4000
0 Be

nr
&J Printed on recycled paper

ee iy
- rg
D le
97 2. 1 Tennis Bubtie 7
- 2 Schoolyard improvement = el
a. Open Sixes Accpiatean © a a
4, Armaivoci Play ~
d & Gali Demand Rilarawenapmgoee rr.

5 Oesvicrd Playground

Rilings Field 4OYAM SHT SO Soro « ;
8 Bonton Common Grew MiGagnM AMOR T a
¥. Boalon ComrmarP ioe Geen Pothwayy a2 ie
10, GretOark Park | :
'T Garage 5 g/CunG ;
12. Chdldiren a Wirt GGerdvatk Enoancement
13. Chinatown Steaolpgieyh Cour A me

id. Crmatoohir Cotumbeia Park (Waterton
; jimbus Park:
ves Pisyqround

it Court Reocvatore ae ; : ~~
: re 3 Lal tow} - .
(.! award i eyground ‘ IDM eal J. Y rid THE ph

TY CU Pir rorounNg a
owner Avenue Playarand -eroliaqu00 >

Sineanoieabels yosqquoue brads a) 19010 as levoiqgs Woy 101 diiwored Nmenmt I -
hovorjgs BousiOel yadieak bas BOC! bo sat no Ybol sidemnoH woy ¥d teeenq yilee
3. Palion igi! 20°} 1S ylul ao yoyeMi 8
26. Pinherty Park. (SH)
DAL A, z eo "abbr of seis bluow wshoo nviisinqoiggs beesqony sdT
to abita sas ie Naat biSeoole qin) tases dnsinqoleveb orl te seoqnug sit dt D0, 080: e
ob insiy cneaae ee Saas sbiee-yiis ort 10) siewhtoz bas smewhradl 19: uq nos
22 Rardiman Piuyground enouonit SOORGE DRA ETNS asouoest SENT
Ad He art Sirce’ Pty gi ound
3° mdependense Square | Lew Prlabeaasl 220q a hoot wor seal
J2 Loenberl Avenue Playground — Pon
3° Langone Perk visrsogi2 ’ oy Wis een
34 MoCon ea Ci i ie : ve "
ey

CITY OF BOSTON
IN CITY COUNCIL

ORDERED: That an appropriation order originally passed by the Boston City Council on
June 24, 1998 and July 15, 1998, and approved by the Mayor on July 21, 1998 in the amount
of Twenty Million Dollars ($20,000,000), is amended by inserting in place thereof the sum of
Twenty Six Million Sixty Thousand Dollars ($26,060,000), appropriated for the
development, design, implementation and operation of computer hardware and software for a
city-wide administrative information system for human resources, payroll, and finance
functions; and that to meet said appropriation the Collector/Treasurer be, and hereby is,
authorized under the provisions of Clause (28) and (29) of Section 7 of Chapter 44 of the
General Laws, to issue from time to time, on request of the Mayor, bonds, notes or
certificates of indebtedness of the City up to said amount, provided that the appropriation
authorized be expended only on those projects as described by name attached herein.

i HEREBY CERTIFY THAT
THE FOREGOING, IF PASSED IN
THE ABOVE FORM, WILL BE IN
Vine 0 WITH, LAW.

MERITAA.HORKINS J }
CORBORATION COUNSEL “77%,

Attachment

1. Financial Management Information System

CITY OF BOSTON - MASSACHUSETTS

OFFICE OF THE MAYOR
THOMAS M. MENINO

April 13, 1999

TOmHe CLry COUNCIL
Dear City Councilors:

I transmit herewith for your approval an appropriation order in the amount of
$950,000 to be expended in aid of the Boston Redevelopment Authority for defraying such
part of the costs of development, renovation, modernization, acquisition, purchase and
operations relative to urban renewal projects located in various urban renewal areas
throughout the City of Boston.

I urge your Honorable Body to pass this order.

Sincerely,

Thomas M. Menino
Mayor of Boston

BOSTON CITY HALL * ONE CITY HALL PLAZA * BOSTON ¢ MASSACHUSETTS 02201 © 617/635-4000
© Bon

n
&J Printed on recycled paper

Peaaarsiinaia aT TA HOAZRAM « VOTeOd TO YTD

ROYAM FHT IO SOAIO 4
: ’
1, Fiance! Maragentent ine PE TA, BRMOHT | —~

C86) ET lng
o
Af

JNKU00 YTIO gHT Gee 7
, were i’)

woloneD VID ro ¢ Cae 7

to Javorna sd? ai 1Sh10 noiteiqoiqqe ma lavorgys wo wot iiwsred iimensat |. ar 7

Hove gniyetish rot yinodutA inemqolevshall noieod sai to bin vi habnogxe od 03 000,0 ei
bre sasiowdq ,.cottieivipos oitesimebonr ,noitsvons inomqoloveb te ereo9 oft to m ah

eacis lswonsi nadia euorsy ai hstssal efoa(oq lswonsr nach ot svitslot 2noiisreq -

noi208 to ytiD od) worlguow

ebro ziutt 2esy of yboO sidetoqolt WO Sgr |

CITY OF BOSTON
IN CITY COUNCIL

ORDERED: That the sum of Nine Hundred Fifty Thousand Dollars ($950,000) be, and
hereby is, appropriated to be expended in aid of the Boston Redevelopment Authority for
defraying such part of the costs of development, renovation, modernization, acquisition,
purchase and operations relative to urban renewal projects located in the following urban
renewal areas: Charlestown, West End, Government Center, South End, Fenway, Park Plaza,
Kittredge Square, St. Botolph Street, School-Franklin, South Station, Brunswick-King,
Boylston-Essex, South Cove, Washington Park, Campus High, Whitney Street, New York
Streets, Central Business District, Bedford-West, North Harvard, Summer Street NPD and
Waterfront, as will not be met by loans (other than temporary loans) or by contributions or
grants from the federal government or from any other source; and that to meet said
appropriation the Collector/Treasurer be, and hereby is, authorized under the provisions of
Section 20 of Chapter 121B of the General Laws, to issue from time to time, on request of
the Mayor, bonds, notes or certificates of indebtedness of the City up to said amount,
provided that the appropriation authorized through this order be expended only on those
projects as described by name attached herein.

| HEREBY CERTIFY THAT
THE FOREGOING, IF PASSED IN
THE ABOVE FORM, WILL BEIN
e ACCORDANCE WITH LAW.

MERITA A. HOPKAS

PRANS
- 2 “02
ORATION COUNSEL Dane

Attachment

1. BRA Admin FY00-02
2. CNY, Sewer And Drain Repairs

CITY OF BOSTON - MASSACHUSETTS

OFFICE OF THE MAYOR
THOMAS M. MENINO

April 13, 1999

TO THE CITY COUNCIL
Dear City Councilors:

I transmit herewith for your approval an appropriation order in the amount of
$4,925,000 for the purpose of acquiring land for, constructing and originally equipping and
furnishing public schoolhouses and additions, and for the reconstruction, remodeling,
rehabilitation and modernization of any schoolhouse or addition.

I urge your Honorable Body to pass this order.

Sincerely,
Thomas M. Menino
Mayor of Boston

BOSTON CITY HALL ¢ ONE CITY HALL PLAZA ¢ BOSTON ¢ MASSACHUSETTS 02201 © 617/635-4000
® ca

nn
&J Printed on recycled paper

-
on . ‘i
_
Attanhmend
ROYAM SHT AG JOPAC +.
1, SRA Admin FYOOGe OWES (Mi SAO Fi

cu’ Sewer Ard Drain Repairs | Pa Pa

*= os

COOL EL lingA —.- | a

-
es

{OMUOD YTIO SHE

‘zTolloauoD yt tei

a®

Yo tavoms srt. aitebro ooiuiqenqas ax isveagge woy wl rijvrersd titnecmet Ip) ¥
brs aniqqivps yilenigho bre gnitomenos jot bach paiupoe to seoqury sd) 16t O00, ESR ae

guilobornsy ,zoksutenoas ad! Wi bas .zncittbbs brs esevodioorioe sildugq gnideinwi
noltibbs Ww svodioordse Yas to noitssintsbect bas noietilider in
‘oe

ebro aids e2eg of yo sidmoacH woy sgw I

CITY OF BOSTON

IN CITY COUNCIL

ORDERED: That the sum of Four Million Nine Hundred Twenty Five Thousand Dollars
($4,925,000) be, and hereby is, appropriated for projects which may become approved school
projects within the meaning of Chapter 645 of the Acts of 1948, as amended, including the
acquiring land for, constructing and originally equipping and furnishing public schoolhouses
and additions, and for the reconstruction, remodeling, rehabilitation and modernization of any
schoolhouse or addition; and that to meet said appropriation the Collector/Treasurer be, and
hereby is, authorized under the provisions of Section 8 of Chapter 645 of the Acts of 1948, as
amended, or under the provisions of Chapter 642 of the Acts of 1966, as amended, or under
the provisions of Clause (3) and/or (3A) of Section 7 of Chapter 44 of the General Laws, to
issue from time to time, on request of the Mayor, bonds, notes or certificates of indebtedness
of the City up to said amount, provided that the appropriation authorized through this order
be expended only on those projects as described by name attached herein.

| HERESY CERTIFY THAT
THE FOREGOING, IF PASSED IN
THE ASOVE FORM, WILL BE IN

ACCORDANCE WITH LAW.

[heat Oy

ME en Ap LA

TA AL. ACPA

CORPORATION COUNSEL Aye.

Attachment

1. Orchard Park K-8

CITY OF BOSTON » MASSACHUSETTS

OFFICE OF THE MAYOR
THOMAS M. MENINO

April 13, 1999

PO THe.GILY:COUNCIL
Dear City Councilors:

I transmit herewith for your approval an appropriation order in the amount of
$2,550,000 for the purpose of planning, designing, acquiring land for, constructing and
originally equipping structures and facilities and for remodeling, reconstructing, or making
major alterations, additions and major repairs to existing facilities for the purpose of various
city departments including the Boston Redevelopment Authority, Neighborhood
Development and Parks and Recreation Departments.

I urge your Honorable Body to pass this order.

Sincerely,

Thomas M. Menino
Mayor of Boston

BOSTON CITY HALL ¢ ONE CITY HALL PLAZA ¢ BOSTON ¢ MASSACHUSETTS 02201 © 617/635-4000
Omen

nm
© Printed on recvcied paper

Aitactinient
A UIHOA2ZAM « aires vii
ROYAM SHY 3OaoR20O *
4. Orotiard Park KS OUNMAM .M 2AMOHT in

ad oa ef liverA, :

HOVMU0S YTD SHT Oi =

Cao

“rroffonoD WiD aks

to Javomn odd oho sollanqomqys os levorgge wor 101 Giwsned Jimena 1

brisé gaiiouranes .1ot bas! gnitiypoe .golagiesb ,gninnsl to seocrwg alt wit 000,02 '
gnidenr to .giivourtangoer ,guilebonrs: yo? biee 2eiiiiad? bos esurtowve aTigg ups villi nigiIo
woOnay io seoquny edd yt esitifiogt gniteixs oF seg tofsor bra enotibbs enovterasls 10 A
bouthoddgialt ,wnorlivA InemqolovebaM moteod s:/) gaibulont etnomneqsb
ainsotieqotl neimssA bis hed das insmgqo

73tno 2d) easq oF Ybod sidsronoH woy egw |

vistssai%

CITY OF BOSTON
IN CITY COUNCIL

ORDERED: That the sum of Two Million Five Hundred Fifty Thousand Dollars
($2,550,000) be, and hereby is, appropriated for the planning, designing, acquiring land for,
constructing and originally equipping structures and facilities and for remodeling,
reconstructing, or making major alterations, additions and major repairs to existing facilities
including original equipment and landscaping, including the planting of shade trees, paving
and other site improvements incidental or directly related to such remodeling, reconstruction
or repair for the purpose of various city departments including the Boston Redevelopment
Authority, Neighborhood Development and Parks and Recreation Departments, and that to
meet said appropriation the Collector/Treasurer be, and hereby is, authorized under the
provisions of Chapter 642 of the Acts of 1966, as amended, to issue from time to time, on
request of the Mayor, bonds, notes or certificates of indebtedness of the City up to said
amount, provided that the appropriation authorized through this order be expended only on
the project as described by name attached herein.

| HEREBY CERTIFY THAT
THE FOREGOING, IF PASSED IN
THE ASOVE FORM, WILL BEIN

ACCORDANCE WITH LAW.

ws eons ae ceeee creme” pee
; ered
WAI A. MCCA WA. ”
ARS 52 ms. eat Ay Vee 1}.
CORPORATION COUNSEL v t

Attachment

1. Boston East Site
2. N.I.C.E. Program
3. Street Trees FYOO

fees Saint Gam tarsesaee °

Revenue Estimates and Analysis

Overview

The recommended FY00 budget is supported with
$1.605 billion in revenue, an increase of 5.3% over
FY99. The budget includes $1.604 billion in recurring
revenue and $1.0 million in non-recurring revenue.
FY00 will represent the seventh straight year of reve-
nue growth for the City. (Figure 1.) The continuing
trend of positive revenue growth for the City is linked
directly to stability in the Commonwealth’s financial
situation and continued growth of the regional and
national economies.

% Change
10% i Sa = st = ea

ocr a -

6% -

-2% -

4% —— Sy rea
91 '92 93 '94 95 96 97 '98 99 ‘00

Annual Change in City Revenues

FY91 - FY00

* Adjusted for DHH

Figure 1

This chapter begins with a review of national and
state economic and political trends which will impact

Boston in FY00 and beyond. It is followed by an analy-

sis of recent state budget trends and related implica-
tions for state local aid, the City’s second largest
revenue source. Finally, a detailed discussion of the
property tax levy, the City’s largest revenue source, is
presented. Net property tax and state aid together
make up approximately 80% of City revenues and
their continued stability is becoming more and more

critical in determining the City’s ability to deliver ade-

quate services. (Figure 2.)

The Nation

The United States is currently experiencing a period
of solid economic growth. In the summer of 1998, it
appeared as though economic growth could be in
jeopardy as Asian currencies came under pressure

' J
FY'96 FY'00
NET PROPERTY TAX NET PROPERTY TAX
LEVY & STATE AID LEVY & STATE AID
68.0% 79.9%
OTHER OTHER
REVENUE REVENUE
32.0% 20.1%
Net Property Tax Levy and

State Aid as a Percent of
Total Revenue

Figure 2

versus the dollar in the foreign exchange markets.
The Federal Reserve stepped in and lowered the fed-
eral funds rate three times during the rest of 1998 to
take the pressure off of those countries and to calm
nervous investors here at home, many of whom
thought the trouble in Asia would slow economic
growth in the U.S. When foreign currencies weaken
versus the dollar, it hurts the ability of people in the
foreign country to buy our products and slows busi-
ness growth here at home. On the positive side, it
also makes goods coming into the United States
cheaper in dollar terms, which keeps prices down in
the U.S.

The Fed’s rate cuts have kept the economy growing
strongly and the unemployment rate at historical
lows. Even though the seasonally adjusted unemploy-
ment rate in the U.S. fell to 4.2% in March 1999, down
from 4.7% a year earlier, inflation has remained very
low at an annual rate of 1.6%. The Fed never wants
too much prosperity to last too long, however, because
of its concern about rising inflation. Strong growth
can bring inflation and that is why the Fed could raise
short-term interest rates in the future.

Higher interest rates slow the economy by making
money more expensive to borrow for such things as
home purchases. The conventional 30-year fixed rate
mortgage on April 1, 1999 was 6.98%, down slightly
from 7.15% a year earlier. Mortgage rates should stay
near their current level as long as there are no con-
crete signs that inflation is picking up or the Fed does
not move to raise interest rates. Mortgage rates are

still historically very low which should keep the real
estate market healthy for a while longer.

Due to the very strong national economy, federal tax
revenues were so strong in FY98 and FY99 that the is-
sue of how to eliminate the federal budget deficit is
no longer an issue. Now the issue is how to spend the
surpluses that will be available. Whether Congress
decides to spend the surpluses or use them to pay
down the national debt, the states no longer have to
worry quite as much about the financial problems of

the Federal government drastically impacting their fi-

nances.

The Commonwealth

Economic growth in Massachusetts during 1998 was

strong and employment in Massachusetts continued a

trend of growth. The Massachusetts seasonally ad-
justed non-farm payroll showed a nice gain of 52,400
jobs in 1998, a gain of 1.7%. This was down, however,
from a gain of 77,200 jobs in 1997, a gain of 2.5%. The
Massachusetts seasonally adjusted unemployment
rate for February 1999 was 2.9%, down from 3.5% a
year earlier. (Figure 3.)

5%
4.5%

4% —
3.5%

3%
25% To i

Jan'96 Jan'97 Jan'98 Jan'99
Massachusetts
Unemployment Rate
1996 - 1999
Figure 3

The Massachusetts economy has been changing from
an economy dependent on defense and other types of
manufacturing to a service economy. In 1980, manu-

facturing industry employment accounted for approxi-

mately 25% of total non-farm employment in
Massachusetts. By December 1998, it accounted for
only 13.8%. Meanwhile, in December 1998, employ-
ment in the finance, insurance, real estate, and serv-
ices industries accounted for 43.0% of total non-farm
employment in Massachusetts, up from 30% in 1980.

At the cutting edge of the service economy are some
of Massachusetts’ strongest growth sectors; high tech-
nology, biotech, health care, financial services, and
education. Route 128 has become well known nation-
ally as a leading high technology area while Boston
and Cambridge have become home to several leading
biotech companies. Massachusetts has always been a
leader in health care, from the first public demonstra-
tion of anesthesia at Massachusetts General Hospital
in 1846 to the proliferation of managed care. Re-
cently, several hospital expansions, alliances and
mergers have occurred, ensuring a future leadership
role in health care for Massachusetts.

The Commonwealth is also home to many leading fi-
nancial services institutions including John Hancock
Mutual Life Insurance, Putnam Investments, Bank-
Boston Corporation, the Prudential Insurance Com-
pany, and Fidelity Investments. Beginning with the
first mutual fund in the United States, which was
started in Boston, the Commonwealth has attracted
leading mutual fund and other financial services com-
panies.

The Massachusetts economy is helped immensely by
the numerous public and private colleges and univer-
sities within its borders. The largest of these institu-
tions are Harvard University, Massachusetts Institute
of Technology, Boston College, Boston University,
Northeastern University, and the University of Massa-
chusetts. With the national movement toward a serv-
ice economy requiring advanced education,
Massachusetts is well positioned for the future. Col-
leges and universities add to the economy in other
ways as well. From 1991 through 1997, approximately
$300 million of large construction projects were com-
pleted at educational institutions in Boston alone.

In 1998, there was strong growth in the Massachusetts
construction industry. The value of residential con-
struction contracts in Massachusetts is estimated to
have increased 19.5% in 1998, after a 10.9% increase
in 1997. Meanwhile, the value of nonresidential build-
ing construction contracts in Massachusetts is esti-
mated to have decreased only slightly in 1998, after a
25.3% increase in 1997.

The Commonwealth Budget

Over the last seven years, the Commonwealth has
been successful in balancing its own budget. This
now gives the Commonwealth the capacity to support
an adequate and diversified local revenue base that
reduces over-reliance by municipalities on the prop-
erty tax. The following summarizes the state’s budget
situation with the purpose of reflecting upon the

R @ wen w te EA sat Mi

state’s capacity to continue its strong local aid pro-
gram for the state’s cities, towns and regional school
districts.

The Commonwealth has tended to build its budgets
cautiously the last several years by being relatively
conservative in its revenue estimates. This definitely
has played a role in the strong financial condition of
the Commonwealth. According to the Governor's
FY00 Proposed Budget, total FY00 revenues are ex-
pected to be $20.241 billion, an increase of 2.6% over
FY99 projected revenues.

With the Commonwealth running budget surpluses,
talk has turned to giving the taxpayers back some of
their money in tax cuts. A few years ago, the Legisla-
ture approved a sliding scale for capital gains taxes
from 12%, if an asset is held for one year or less, to 0%
for assets held more than six years. The capital gains
tax reduction became effective on January 1, 1996. In
July 1998, the Legislature and the Governor worked
out a tax cut. The tax cut included a doubling of the
personal exemption, a reduction in the unearned in-
come tax rate from 12% to 5.95% and a reduction in
the unemployment insurance tax on businesses. The
Governor has recently filed legislation to cut the tax
on both earned and unearned income from 5.95% to
5.00%.

On the expenditure side, the Commonwealth has built
its FY00 budget with conservative spending plans. In
the Governor's proposed budget, projected expendi-
tures in FY00 total $20.391 billion, an increase of only
1.7% over FY99 projected expenditures.

In the Governor’s proposed FY00 budget, Chapter 70
education local aid increases $140 million, to $2.713
billion, a 5.5% increase over actual FY99 Chapter 70

education local aid. The proposed increase will fully
fund the seventh year of education reform.

In FY93, Commonwealth officials, driven by practical
considerations and availability of resources, rein-
stated increases in local aid in the form of aid ear-
marked for education. This period of increases
followed three years of significant local aid reductions
which played a key role in the Commonwealth’s return
to a balanced budget. The Commonwealth’s annual
cost for direct local aid has increased from $2.359 bil-
lion in FY92 to the $4.456 billion proposed in the Gov-
ernor’s FY00 budget. The following section looks at
Boston's experience with local aid in detail.

State Local Aid

Local aid refers primarily to distributions from the
Commonwealth to municipal general revenues for
Chapter 70 education aid, additional assistance and

lottery aid. The amount of these funds to be distrib-
uted is listed on each community's “cherry sheet” (a
listing of a city or town’s local aid that is printed on
cherry-colored paper) along with other relatively
smaller Commonwealth programs such as library aid,
school construction and transportation reimburse-
ments, and highway funds. The City received local aid
from the Commonwealth totaling $380.2 million in
FY97, $414.7 million in FY98, and has a budget of
$451.0 million in FY99. The City expects $457.2 mil-
lion of local aid in FY00.

Since FY82, there have been three distinct phases in
state local aid funding policy. From FY82 through
FY89, local aid policy was essentially a revenue shar-
ing response to Proposition 2 1/2, the statewide cap
on local property tax rates and levies. A reasonable
annual increase in local aid became an essential com-
ponent in the financial planning for municipalities.
This phase was followed by draconian state aid reduc-
tions implemented during the FY90, FY91 and FY92
budgets. During this period, the Governor and the
Legislature significantly reduced state revenue shar-
ing with cities, towns, and regional school districts in
order to help balance the state budget. Between FY89
and FY92, statewide cherry sheet aid declined $602
million or 20% while all other state spending in-
creased by $1.5 billion or 15%.

A key component of the Commonwealth’s education
reform efforts are the charter schools. The current
educational aid is delivered in tandem with state-
mandated costs for charter schools. Charter schools
are publicly funded schools administered independ-
ently from local school committee and teacher union
rules and regulations and whose charters are granted
by the State Board of Education. There are two kinds
of charter schools, the Commonwealth charter school
and the Horace Mann charter school. The former is a
school outside the local public school system and the
latter is part or all of a school in the public school sys-

tem. In addition to the Board of Education, the local

school committee and local bargaining agent must ap-
prove Horace Mann charter schools. In addition, Hor-
ace Mann charter schools’ budgets remain part of the

public schools budget.

Two pilot schools opened in Boston as Horace Mann
charter schools for September 1998. There are five
Commonwealth charter schools currently operating in
Boston and two more are scheduled to open in Sep-
tember 1999. In addition to these five charter
schools, Boston residents attend 3 charter schools
outside of Boston. There are currently 1918 students
in Boston attending charter schools. The Governor's
proposed FY00 budget recommends removing the
limit on the number of charter schools which can be
opened statewide. Before FY99, all charter school tui-
tion was drawn directly from the City’s Chapter 70 aid.
This draw on the City’s education aid totaled $10.4
million in FY97 and $10.9 million in FY98. Under re-
cent amendments to the charter school law, the Com-
monwealth will pay a declining share of between 100%
and 0% over four years for new students and increases
in tuition. The Governor's proposed FY00 budget,
however, recommends cutting the reimbursement
from between 100% and 0% over four years to 50% for
one year. The City has budgeted $12.2 million to be
the net impact of the charter schools in FY99 after re-
ceiving a $3.0 million reimbursement from the Com-
monwealth. The City expects $16.7 million to be the
net impact in FY00 after a $1.5 million reimburse-
ment. In the long term, it is assumed that the charter
schools that thrive will increase overall enrollment
which in succeeding years will increase funding for
the school district in the Chapter 70 formula and miti-
gate the negative fiscal impact of charter schools on
the City’s traditional public schools.

Lottery aid for the City, as for most municipalities, has
grown steadily the last few years as a result of a state

8 6 Re Je -V ce hn i 6

decision to phase-out the Lottery cap and return all
lottery profits to the cities and towns. FY00 is the
fifth and final year of the state’s plan. The City’s lot-
tery aid was $41.1 million in FY97 and $49.6 million in
FY98. The City expects that FY99 lottery aid will ex-
ceed the budget estimate of $51.0 million due to a
supplemental lottery aid distribution of $5.2 million.
The City expects to receive $56.0 million in lottery aid
in FY00. The lottery formula distributes lottery aid in-
creases based inversely upon each municipality's rela-
tive per capita property wealth. The City receives a
smaller percentage in lottery aid than its share of the
state population, and dramatically less than the share
of lottery proceeds derived from sales in Boston. Nev-
ertheless, lottery has been an important source of
revenue growth, aiding the City’s efforts to sustain
adequate municipal services. During the last four
years, Boston’s lottery distribution has reflected both
lottery profit growth and the phasing out of the diver-
sion of lottery funds to state coffers. Beginning in
FY01, the City’s lottery distribution will reflect only
profit growth in the lottery.

Property Tax Levy

The property tax levy has been the City’s largest and
most dependable source of revenue growth during the
past fifteen years. In FY99, the property tax levy was
$819.3 million, providing 53.5% of all City revenue,
with an increase to $858.3 million expected in FY00.
According to current estimates, the property tax levy
will account for 53.7% of total revenue in FY00.

The increases in the property tax levy have been
steady and consistent from FY85 to FY99, ranging
from $28 million to $41 million. However, because of
the increasing property tax levy base, the $29.9 mil-
lion increase in FY85 represented an 8.9% increase,
while the $36.9 million rise in FY99 represents 4.7%
growth. It is important for the financial health of the
City that the property tax levy continue to grow but its
future growth, as explained in more detail below, is
not guaranteed.

Proposition 2 1/2 has been the overwhelming factor
affecting the City’s property tax levy since being
passed in 1980. Proposition 2 1/2 limits the property
tax levy in a city or town to no more than 2.5% of the
total fair cash value of all taxable real and personal
property. It also limits the total property tax levy to
no more than a 2.5% increase over the prior year’s to-
tal levy with certain provisions for new growth and
construction. Finally, Proposition 2 1/2 provides for
local overrides of the levy limit and a local option to
exclude certain debt from the limit. The City of Bos-

ton, however, has not voted to either override the levy
limitations or exclude any debt from the limit.

Proposition 2 1/2, as amended in 1991, allows growth
in the levy beyond the 2.5% limit for any new proper-
ties and any increases in property valuations that are
not related to municipal-wide revaluations. This limi-
tation is more flexible than the original limitations on
allowable new growth and has helped to strengthen
revenue growth in a budget that does not have a very
diversified revenue base.

In each year since FY85, the City has increased its
levy by the allowable 2.5%. These increases have
grown as the levy has grown, beginning in FY85 at $8.4
million and reaching $19.6 million in FY99. During
these same years, the levy has also been positively im-
pacted by taxable new value, especially from new con-
struction that has added to the tax base. Taxable new
value is expected to be $18.5 million in FY00. The
combined effect of the allowable 2.5% increase and
the taxable new value is an average annual levy in-
crease from FY97 through FY99 of 4.4%, and a pro-
jected increase in FY00 of $39.0 million or 4.8%.

From FY85 through FY89, assessed property values in
Boston increased at an average annual rate of about
22%, far outpacing the capped growth in the levy.
Most of this increase was due to appreciation in the
value of existing properties. This disparity between
value appreciation and levy growth caused a signifi-
cant downward trend in the property tax rate. The Ci-
ty’s effective property tax rate in FY84 was 2.5%. By
FY89, the effective property tax rate had fallen to
1.4%. When the disparity between growth in value
and growth in the levy flows in this direction, the Ci-
ty’s property tax base becomes more protected (i.e.
more distant from the 2.5% limit).

What occurred in the Boston real estate market be-
ginning in 1988 significantly reversed the FY85
through FY89 property tax trends described above
(which reflect real estate activity in calendar years
1983 through 1987). As economic activity slowed,
Boston’s real estate values leveled off. Then, as the
New England region experienced a deep recession,
activity in both the commercial and residential mar-
kets slowed more dramatically. Office vacancy rates
increased and downtown development came to a near
standstill.

All of this was reflected in the fourth citywide revalua-
tion, establishing values as of January 1, 1991 at $29.8
billion. This represented an 18.1% decline from the
prior year’s total taxable value. This was followed by
an 8.4% trending down for January 1, 1992 values at
$27.3 billion and a 1.9% decline for January 1, 1993 to

Rea ve a ec ES t bw 2 ¢t & s 7 &

$26.8 billion. The January 1, 1994 values, established
by the fifth citywide revaluation, showed a 5.0% in-
crease to $28.1 billion. This was followed by increases
in taxable value of 4.5% and 5.5% in the following two
years. The sixth citywide revaluation that established
values as of January 1, 1997, showed a 9.0% increase
to $33.8 billion. This was followed by a market in-
dexed assessment in FY99 that established values as
of January 1, 1998 and showed a 6.8% increase to
$36.1 billion. These last five measures of taxable City
property values have demonstrated recovery and sta-
bility in the City’s real estate market since the signifi-
cant fall in values in the beginning of the decade.

As values decreased in the early 1990s, the City con-
tinued each year to maximize the allowable levy in-
crease under Proposition 2 1/2. Between FY90 and
FY94, the levy increased each year by an average of
6.4%. The dramatic decrease in values brought the ef-
fective tax rate (levy / taxable value) from its healthy
low point of 1.4% in FY89 to 2.47% in FY94, danger-
ously close to the Proposition 2 1/2 tax rate ceiling of
2.50%. Reaching the 2.5% cap would result in the al-
lowable 2.5% annual levy growth being reduced in a
low value growth year. However, subsequent to the
four years of total taxable value increases described
above, the City now has some space between its FY99
net effective tax rate of 2.27% and the tax rate ceiling.
(Figure 4. )

$ Per Thousand

$90 tea 5 1G ertore

ee Proposition 2 1/2 Ceiling
$25
$20 =e
$15

$10

$5 —

‘90 ‘91 92 '93 '94 95 ‘96 '97 '98 ‘99

Overall Property Tax Rate
FY90 - FY99

Figure 4

There are continued signs of improvement in some of
the variables which influence decisions by investors
to go forward with commercial and residential devel-
opment. In most parts of Boston, single family home
prices are rising, sales are increasing and apartment

rents are moving higher. Commercial rental rates are
also increasing and vacancy rates are falling. (Figure

5.)

20%

15% — . ————
10% — ———__———.
Th

‘91 '92 '93 '94 '95 '96 '97 '98
Boston Office Space

Vacancy Rates
1991 - 1998

Source: Meredith & Grew

Figure 5

Demand for office space in Boston continues to in-
crease. As of the fourth quarter of 1998, the overall
Boston office vacancy rate dropped to 3.3% from 4.1%
at the end of 1997. Because office vacancy rates are
dropping, rents are rising. The average asking rent,
per square foot for office space in Boston during the
fourth quarter of 1998 was $36.80, up dramatically
from $25.63 a year earlier. During the fourth quarter
of 1998, the average asking rent per square foot in
Back Bay was $36.37 nearly unchanged from $36.87 in
the fourth quarter of 1997. In the financial district,
however, the average asking rent per square foot dur-
ing the fourth quarter of 1998 was $41.04, up signifi-
cantly from $27.93 in the fourth quarter of 1997.
(Figure 6.)

Boston’s housing market is currently characterized by
rising rental rates and rising single family home
prices. In Boston, apartment rents are rising due to a
short supply of rental condominiums and apartments.
The supply of rental units is down as the sale of previ-
ously rented condominiums removes them from the
rental market. The trend in home prices is higher as
the median single family home price in the Boston
Metropolitan Statistical Area during the second quar-
ter of 1998 was $206,400, up 6.3% from the second
quarter of 1997. This compares with the median sin-
gle family home price in the United States during the

second quarter of 1998 of $130,900, which was up 5.8%
from the second quarter of 1997.

Should the real estate market, which is currently
positive, suddenly depreciate again, the City’s proxim-
ity to the 2.5% tax rate threshold could impair the
growth of the property tax levy for the first time since
FY84. This would have serious implications for the Ci-
ty’s future ability to maintain the current level of serv-
ices. Fortunately, however, the real estate market was
healthy in 1997 and 1998 and is expected to remain so
throughout 1999 and into 2000.

It should be noted that the City receives approxi-
mately 80% of its revenue from property taxes and
state aid. Should the economy fall into a deep reces-
sion, real estate values could be pushed low enough to
negatively affect the property tax levy, while simulta-
neously pressuring the state to cut local aid. Real es-
tate prices generally turn down because of weaker
economic conditions and weaker economic conditions
usually hurt the Commonwealth’s tax collections and
force it to increase spending on social programs. This
could negatively impact the Commonwealth’s ability
to balance its budget without cutting local aid. Cur-
rently, the real estate market and the Common-
wealth’s financial position are expected to be strong
for the foreseeable future.

Dollars /Sq. Ft.
$50. - 7

WB Back Bay | | Financial District

$40

$30

$20 —

$10 —

$0 —

917 "92" 93°" 94" 95 — 96> "97-938"
Boston Office Space
Asking Rents
1991 - 1998

* 4th quarter

Figure 6

011-0129
011-0130

011-5104

011-7151

011-0169

011-1013

011-3105
011-3109
011-3120
011-3137
011-3202
011-3211
011-3301
011-3311
011-3321
011-3797
011-4002
011-4101
011-4103
011-5106
011-7001
011-7117
011-7119
011-7131
011-7132
011-7155
011-7157
011-8000
011-8003

CITY OF BOSTON

REVENUE DETAIL
FY97 FY98 FY99 FY00
Actual Actual Budget Budget
PROPERTY TAX LEVY 748,987,129 782,438,622 819,300.061 858,282,562
OVERLAY RES ERVE (38,034,032) _ (50,566,487) _ (42,712,325) _ (33,010,868)
Subtotal 710,953,097 731,872,435 776,587,736 825,271,694
EXCISES
Motor Vehicle Excise 30,275,142 32,341,091 33,500,000 36,300,000
Room Occupancy Excise 19.670,581 21,943,065 22,800,000 23,900,000
Jet Fuel Excise 12,078,411 12,588,825 12,200,000 13,900,000
Other Excise 144,497 328,500 295,000 320,000
Subtotal 62,168,631 67,201,481 68,795,000 74,420,000
FINES
Parking Fines 45,333,621 44,188,380 46,700,000 57,500,000
Code Enforcement - Trash 107,995 95,600 95,000 100,000
Other Fines 3,517,674 2,006,892 2,278,500 2,278,500
Subtotal 48,959,290 46,290,872 49,073,500 59,878,500
INTERES T ON INVES TMENTS 16,762,111 16,711,478 15,300,000 18,000,000
PAYMENTS IN LIEU OF TAXES
Mass port 10,127,596 10,253,847 10,378,559 10,482,345
Other Payments In Lieu of Taxes 8.071.462 9,262,985 122705501 9,340,190
Subtotal 18,199,058 19,516,832 25,649,060 19,822,535
URBAN REDEVELOPMENT CHAPTER 121A
Urban Redev. Chap. 121ASec. 6A 8,177,908 10,430,169 8,323,542 8,975,979
Urban Redev. Chap. 121A Sec. 10 25,808,963 26,178,704 24,563,099 25,384,510
Subtotal 33,986,871 36,608,873 32,886,641 34,360,489
MISC. DEPARTMENT REVENUE
Registry - Vital Statistics 871,301 891,627 900,000 910,000
Liens 634,525 844,023 850,000 975,000
City Clerk - Fees 396,949 496,369 500,000 525,000
Municipal Medicaid Reimbursement 8,721,859 8,160,179 8,000,000 12,000,000
Police Services 870,754 747.681 750,000 650,000
Fire Services 2,112,409 2,528,008 2,400,000 2,750,000
Parking Facilities 1,989,457 1,082,121 700,000 800,000
PWD - Street & Sidewalk Occupancy Fees 1,930,813 4,775,984 2,700,000 3,000,000
Buildings - Rents 272,415 232,342 230,000 275,000
PWD - Fiber Optic Rental Fees 0 423,452 340,000 600,000
Tuition & Transportation - Schools 611,723 608,106 600,000 615,000
Library Fees 138,093 147,520 160,000 175,000
Library of Last Recourse 2,486,284 2,622,739 1,074,539 0
Registry of Deeds Fees 1,994,223 2,343,072 2,500,000 0
Telephone Commissions - City 115,443 100,240 120,000 100,000
Worker's Comp. Reimbursement 673,678 1,410,192 1,100,000 1,100,000
Settlements 1,223,606 564,759 800,000 900,000
Pensions & Annuities 3,596,377 1,850,665 1,850,000 2,000,000
Fringe Bene fit & Indirect 758,817 1,125,196 800,000 875,000
Prior Years Reimbursements 889,322 2,149,582 2,500,000 2,100,000
Misc. Recovered Revenues 0 0 1,200,000 0
Police Detail, 10% Admin. Fee 1,610,127 1,652,362 1,675,000 1,900,000
Fire Detail, 10% Admin. Fee 209,262 208,319 250,000 375,000
Other Misc. Department Revenue sa 205077 871,073 1,603,325 Igo38%509 1
Subtotal 39,627,614 35,835,613 33,602,864 34,262,531
ny @ ven ll 6 Eeayt len tes Ana ey ae

011-0211
011-0213
011-0215
011-0221
011-0222
011-0224
011-0225
011-0229
011-0235

011-0133
011-0134
011-0136

011-2502
011-2503

011-1015
011-1101
011-1102
011-1103
011-1104
O1l1-1111
011-1112
011-1114
011-1116
011-1119
011-1301
011-1305
011-1306
011-1307
011-1311
011-1316

O11-1115

011-2501

CITY OF BOS TON

GRAND TOTAL _1,381,149,667

Re ch Ww a fh wW BE st tt i

1,446,221,643

PEP Ye PIRI Lo

REVENUE DETAIL
FY97 FY98 FY99 FY00
Actual Actual Budget Budget
LICENSES & PERMITS
Building Permits 9,199,877 ae 03 6.000.000 12,000,000
Weights & Measures 167,535 S35 005 160,000 0
BTD - Street & Side walk Permits 1,025,581 1,204,744 1,100,000 1,250,000
Health Inspections 881,899 1,045,703 900,000 1,000,000
Alcoholic Beverage Licenses DELS 53515 PL ILI IDEN OS) 2,280,000 2,350,000
Entertainment Licenses 466,323 479,452 480.000 480.000
Police & Protective Licenses and Permits 541,830 429,209 450,000 450,000
Other Business Licenses and Permits 897,414 910.460 940.000 950,000
Cable Television 1,751,939 1,887,984 2.475.000 2,500,000
Other Licenses and Permits 267,246 280,870 390.000 325,000
Subtotal W739 55155 23VA22. 2.67, 15,175,000 21,305,000
PENALTIES & INTEREST
Penalties & Interest - Property Tax 12262,625 1,636,080 1,350,000 1,500,000
Penalties & Interest - Motor Vehicle Excise 2,817,692 2,809,178 2,800,000 2,900,000
Penalties & Interest - Tax Titles 4,751,106 5,106,086 5,000,000 5,800,000
Other Penalties & Interest 389 83 500 500
Subtotal 8,831,811 9,551,427 9,150,500 10,200,500
AVAILABLE FUNDS
Cemetery Trustee 700,000 700,000 1.588.608 1,636,159
Parking Meters 8,500,000 8,500,000 7,900,000 10,000,000
Subtotal 9,200,000 9,200,000 9,488,608 11,636,159
STATE AID
State Owned Land 0 207,244 246,884 308.605
R.E. Abatements - Veterans 0 38,033 211,628 211,628
R.E. Abatements - Surviving Spouses 264,150 264,150 265,494 265.494
R.E. Abatements - Blind 0 27,300 Bos 26,211
Elderly Exemptions 789,646 728,904 728,904 712,083
State Lottery Local Aid 41,107,710 49,589,823 50,955,659 55,964,533
Highways 836,476 . 836,476 836,476 836,476
Veterans Services 718,412 1,334,063 954,443 874,241
Additional Assistance 206,638,214 206,638,214 206,638,214 206,638,214
Racing Taxes 576,720 531,176 503,600 503,600
School Construction 13,609,096 11,229,970 12,851,991 16,721,414
Charter Schools Reimbursement 0 0 2,974,172 1,466,884
Chapter 70 Education Aid 115,486,884 143,916,033 178,229,434 180,003,467
Charter Schools Tuition (10,353,290) (10,948,104) (15,184,169) (18,143,730)
School Trans portation 10,098,885 9,697,246 SSM OMT) C323 97,
Tuition for State Wards 433.092 644,950 1,486,818 1,486,818
Subtotal 380,205,995 414,735,478 451,038,156 457,188,335
TEACHERS PENSION REIMBURS EMENT 34,860,035 Ss) PVE 35,000,000 37.500.000
NON-RECURRING REVENUE
Surplus Property 0 0 1,775,000 1,000,000

1 604,845,743

Innovations in Education

Overview

Improving education throughout Boston requires a
united effort by students, teachers, parents, commu-
nities, schools, and private businesses, along with City
and State officials. FY00 will be the fourth year of
the Boston Public Schools’ five-vear Education Re-
form Plan, A Focus on Children. The Boston Public
Schools (BPS) is several steps closer toward attaining
its goals of improved teaching and learning, but a
great deal of hard work is still needed. BPS Operating
Budgets and City Capital Plans from FY99 and prior
years have provided BPS with the resources that have
led to improvements in student performance and nu-
merous successful BPS initiatives.

Accomplishments in FY99 and Prior Years

Improvements in Student Performance

BPS students are performing better. This is demon-
strated by a system-wide reduction in the percentage
of students scoring at the lowest levels on the Stan-
ford 9 test in both reading and math. An example of
this improvement in the level of student achievement
is a 9% system-wide decline in students scoring at the
lowest level in math. This improvement coincided
with an overhaul of the curriculum and a shift of fo-
cus within the mathematics program.

In addition to student performance, student atten-
dance has also improved. This is demonstrated by an
increase of 32% in the number of students with per-
fect attendance for the first half of the school year.
This achievement of 10,461 students with perfect at-
tendance coincided with a school-based emphasis on
attendance and stricter tardiness policies.

Successful BPS Initiatives

The resources provided by the City have been com-
bined with community-based resources and various
external resources to produce the following tangible
results in the Boston Public Schools:

@ Purchased textbooks and materials in major subject areas;

These accomplishments are key components in bring-
ing about whole school change. Details on these ini-
tiatives and additional accomplishments are included
in the “FY99 and FY00 Initiatives” section of this chap-
ter.

Initiatives and Plans for FY00

Initiatives in the BPS FY00 Operating Budget

In FY00, the Boston Public Schools’ budget continues
to fund many of the initiatives started in the first 3
years of A Focus on Children. The FY00 operating
budget also funds new initiatives:

@ The establishment of the final phase of a literacy profes-
sional development program, the Cohort program;

@ The purchase of new textbooks and materials in Grade 9 &
10 social studies and materials for Grades K-6 Bilingual
science students;

@ An increase in operational support for technology.

These items are all included in the FY00 BPS operat-
ing budget of $573,944,785. More detail on the FY00
BPS operating budget is available in the Education
section of Volume Two of the FY00 City of Boston
Budget. Also, more detail on State funding (Chapter
70 Aid) and formal budget procedures are available
near the end of this chapter.

Initiatives in the City FY00-04 Capital Plan

In addition to operating funds, this administration has
committed hundreds of millions of dollars in capital
expenditures toward school projects in previous Capi-
tal Plans. FY00-04 Capital Plan includes the following
items:

® Siting for 4 additional new schools;

@ Full school renovations at 2 high schools;

In addition to these highlights, there are a wide as-
sortment of maintenance projects for schools includ-
ing, windows, roofs, and boilers. More detail on
capital expenditures and plans is available near the
end of this chapter and in the project-by-project list-
ing in Education section in Volume Two of the FY00
City of Boston Budget.

BPS Goals

In order to improve student achievement, the BPS
utilizes The Five-year Education Reform Plan, A Fo-
cus on Children. A Focus on Children is designed to
serve as a guide to help bring about whole school
change. A Focus on Children highlights the following
goals:

© Goal 2: Change the structure of the Boston Public Schools
to focus on student performance and to serve the commu-
nity.

® Goal 3: Provide safe, nurturing, healthy schools where stu-
dents receive the support they need to succeed.

® Goal 4: Engage parents and the community in school im-
provement through a unified, collaborative structure and
effective communication.

Within these goals, the School Committee has out-
lined areas of priority to serve as focal points. These
priorities are:

® Close the Achievement Gap;

The BPS has made strides in each of these areas over
the past few years, and the School Committee has in-
cluded many plans and programs in the FY00 budget
that address these priorities.

The stated BPS Goals combine with student enroll-
ment needs to define the programs and services pro-
vided in the Boston Public Schools. Previous, current,
and future operating budgets and capital plans are
produced to address these needs in accordance with
governing laws, statutes, and ordinances. The BPS
FY00 Operating Budget and the City of Boston’s FY00-

04 Capital Plan allocate resources to build upon previ-
ous accomplishments and generate new initiatives
within the Boston Public Schools. These plans are de-
signed to serve as a foundation for, and in cooperation
with, external funds, private partnerships, and state
aid programs.

Resources

BPS Operating Budgets

The FY00 BPS Budget is a product of the Boston Pub-
lic Schools’ ongoing effort to align resources with edu-
cational priorities. This budget recommendation is
the product of many difficult and purposeful deci-
sions. These decisions were made in order to allocate
resources to priority areas that most directly affect
teaching and learning. The tradeoffs require the real-
location of resources from important, but less-critical
programmatic areas. This ensures effective, fiscally
sound schools where all children are prepared to
achieve at high levels.

The FY00 BPS budget continues to build on the
changes of previous years. It is clearly focused on im-
proving teaching and learning for all students and
concentrating resources at the school level in order to
implement city-wide learning standards and whole
school change.

The BPS budgetary decisions are driven by the devel-
opment of budget estimates based on rigorous data
analysis and management controls. This budget pro-
vides sufficient funding for:

® Increasing enrollment;

® Implementation of the fourth year of A Focus on Children;
® Inclusion of Comprehensive Literacy and Math Programs;
@ Fixed costs;

These areas are funded while identifying savings
based on more cost-effective approaches to program
implementation.

In the analysis of these areas, the following factors
have been examined: inflation, attrition rates, wage
bases, the rate structure for medical insurance premi-
ums, levels of transportation ridership, current year
forecasted spending, historical expenditures, growth
rates, and the impact of new staff and programs.
These factors have also been examined in previous
budget processes.

BPS Operating Budgets, Prior to FY00

In the years leading up to FY00, Boston has been com-
mitted to improving education. The BPS FY99 Oper-

ating Budget of $543.1 million includes funding that
is:

@ A 7.1% increase over the FY98 appropriation of $507.2 mil-
lion, while the FY99 total city budget increased 4.9% over
the FY98 appropriation;

@ 43.7% of the total city FY99 appropriations, an increase
from 42.8% in FY98.

© A cumulative increase of $135.0 million, or 33.1%, between
FY94 and FY99. This is $23.4 million more than the in-
crease in total educational revenue between the same
time period.

These funding trends continued in the formulation of
the FY00 BPS operating budget.

BPS FY00 Recommended Operating Budget

In the Mayor’s FY00 Recommended Budget, Boston
continues its commitment to improving education.
The total City-Funded FY00 BPS Operating Budget is
$573,944,785. This figure includes funding for the
only executed collective bargaining agreement, the
Boston Teachers Union (BTU) contract. All other 16
outstanding units (14 of which are governed by collec-
tive bargaining) will be accounted for in the future, as
they are settled. The City-Funded FY00 BPS Operat-
ing Budget of $573.9 million is:

@ An increase of 5.7% over the FY99 appropriation of $543.1
million, while the FY00 total city appropriations are in-
creasing 5.1% over FY99 appropriations;

@ 43.9% of the total city appropriations, an increase from
43.7% in FY99;

© A cumulative increase between FY94 and FY00 that is
$52.5 million more than the increase in total educational
revenue in the same time period.

BPS Projects in City of Boston Capital Plans

BPS Capital Projects, Prior to the City of Boston
FY00-04 Capital Plan

The Mayor's commitment to education extends into
the Capital Plan. In City of Boston capital projects
prior to FY00-04, funding for BPS projects:

These funding levels continued in the formulation of
the FY00-04 City Capital Plan and have increased dra-
matically in the last few years.

BPS Capital Projects in City of Boston FY00-04 Capital
Plan

In the City of Boston FY00-04 Capital Plan, BPS capi-
tal projects:

The continuing emphasis on school technology, school
renovations, and new school construction are the key

factors projected to increase the School Department’s
share of forecasted Capital expenditures in FY00.

Further detail on school capital expenditures and
plans is available near the end of this chapter and in
the project-by-project listing in Education section in
Volume Two of the FY00 City of Boston Budget.

BPS Students and Programs

Student Enrollment

Student enrollment is the key driver of the BPS
budget. Many of the allocations of resources at the
school level are determined by the projected enroll-
ment at each school for the next school year. These
projections are distributed across all of the programs
offered, across all grades, and at every school. As of
mid-December 1998, BPS had 63,079 students en-
rolled. This is down 414 from the 63,493 students en-
rolled in December 1997. However, this still
represents a total increase of approximately 2,900 stu-
dents over the last five years, an increase of about
4.8%. (Figure 1.)

Enrollment growth is expected in the area of special
education, and enrollment is expected to decrease in
the area of bilingual education. Currently 64% of the
students are in regular education programs (includ-
ing vocational and advanced work), 15% are in bilin-
gual education programs, 11% are in mainstream
special education programs, and 10% are in substan-
tially separate special education programs.

Students currently attend sessions at 129 schools in-
cluding, 6 early education and learning centers, 72
kindergarten/elementary schools, 7 elementary and
middle schools (K-8), 20 middle schools, 18 high
schools, 3 exam schools, and 3 special education
school programs. Of these 129 schools, 8 are currently
pilot schools. In addition to the 129 schools, there are
3 additional programs for college prep, high-risk stu-

dents, and students who have violated the BPS Code
of Discipline.

% Change
28%. Sa

24%

20%

16%

12%

0%
'95 '96 '97 '98 99 ‘00
Cumulative School Enrollment Growth

vs. Cumulative School Expenditure Growth
FY95 - FY0O

Figure 1

The Department seeks to ensure equal educational
opportunities and prevent discrimination and ine-
qualities based on racial, ethnic, socio-economic, gen-
der, sexual orientation, or any other reasons. The
student population is ethnically diverse. The current
enrollment is 49% African-American, 26% Hispanic-
American, 15% Caucasian, 9% Asian-American, and
less than 1% Native-American.

Programs and Services

Regular Education

Regular education is comprised of grades 1 through
12, kindergarten, and early learning opportunities.
The programs offered under this area range from
early learning and early education centers to high
school programs, from classical education to technol-
ogy, from social studies to international studies, and
from advanced work classes to remedial and alterna-
tive education programs. Regular education students
are also often exposed to integration with bilingual
and special education populations. In addition, adult
basic education and evening high school programs are
available for Boston’s adult population.

Bilingual Education

The Bilingual Education program offers English as a
second language to those students not yet proficient

in English. For nine language groups, instruction is
offered in most subject areas in the students’ native
language. Programs that encompass 5% or more of
the Bilingual population include Spanish with 45%;
Haitian Creole with 10%; Chinese with 7%; Cape Ver-
dean with 7%; and Cambodian, Laotian, or Vietnamese
with 5%. Currently, among the smaller populations,
the Somali and Albanian populations are increasing.

Bilingual education students are assessed and placed
according to their English language proficiency. To
increase interaction among regular education and bi-
lingual education students, there are schools with
“two-way” programs in English and Spanish. In addi-
tion, a number of schools have implemented their own
more limited initiatives to promote interaction be-
tween bilingual and regular education students.

Special Education

Many special education students in Boston schools
spend the greater part of their day mainstreamed in
regular education programs. These mainstreamed stu-
dents are known as either resource room students or
students in program prototypes 502.1, 502.2, or 502.3.
Apart from their regular education classroom they re-
ceive additional assistance in accordance with their
individual education plans (IEPs).

Substantially separate special education students are
in program prototype 502.4. These students attending
Boston Schools spend the majority of their school day
in substantially separate educational programs receiv-
ing educational services according to their IEPs. An
astounding 46% of Boston’s special education popula-
tion is served within separate classroom settings. The
national average is 23%, and the Massachusetts aver-
age is 21%. Studies of the 1996-7 and 1997-8 school
years indicate that very large numbers of children,
who have previously never received special education
services are being determined as having a disability,
and are being placed in 502.4 settings as their first
special education experience. An action plan has
been developed to address the percentage of students
moving from no service to 502.4 settings.

A number of schools are implementing instructional
models that provide special education students with
integrated learning opportunities. That is, students
with severe special needs spend some portion of their
school day with support in a regular education class
setting. Currently 879 special education students re-
ceive educational services outside the School Depart-
ment in private day or residential programs. The
district strives to ensure that all special education
students are educated in the least restrictive environ-
ment.

Support Services

Students in all programs take advantage of the wide
range of the support services in the schools. The
scope of services available to students has changed
and increased significantly. This expansion of student
support is designed to better the system’s capacity to
address the changing needs of students. School medi-
cal services, psychological services, guidance services,
and support services are offered across the grade lev-
els. In addition, collaborative arrangements with hu-
man services and community agencies supplement
the support offered to students and their families.

Accomplishments and New Programs

FY99 & FY00 Initiatives

The School Department has had success in moving
forward on all of the FY99 BPS initiatives listed in Ta-
ble 1. For FY00, the BPS Budget and City Capital Plan
include many major initiatives that reflect shared pri-
orities, many of which are listed in Table 2. The fol-
lowing tables are highlights of many major
achievements and plans for the future. They are not
meant to be comprehensive listings of all achieve-
ments or plans in the schools.

These initiatives are included to move the school sys-
tem and teaching and learning forward. Some of
these initiatives are continuations of the FY99 or prior
year’s initiatives. This does not mean that the school
system is not moving forward, but rather the school
system is following through on multiple-year plans in
order to bring about educational reforms. In fact, in
many instances, BPS is strengthening its commitment
to prior year’s initiatives.

The following tables (1 & 2) outline FY99 Operational
Initiatives and Accomplishments and FY00 Opera-
tional Initiatives and Plans:

In addition to the initiatives listed on the tables, there
are three alternative educational models underway in
Boston.

Alternative School Designs

Pilot Schools

Pilot schools were developed through the BPS/BTU
collective bargaining contract. Pilot schools, also
known as in-district charter schools, are established
through proposals submitted in a Request for Propos-
als process, in which at least one of the individuals
submitting the proposal is a BPS staff member. The
pilot schools are free from the union contract and
School Committee rules and regulations.

There will be a projected 1,883 students being edu-
cated in Boston’s pilot schools during school year
1999-2000. Pilot schools can serve as useful examples
of cutting-edge education practices. However, not all
educational methods are transferable to all class-
rooms. A large number of the education initiatives in
pilot schools can be associated with the decisions that
can be made because of the managerial flexibility
available to them at the school level.

Boston currently has nine approved pilot schools.
They are the 1) Fenway Middle College Pilot School,
2) the Young Achievers Science and Mathematics Pi-
lot School, 3) the Lyndon Pilot School, 4) Greater
Egleston Community Pilot High School, 5) the Mis-
sion Hill Pilot School, 6) the Harbor Pilot School, 7)
the Multicultural Pilot High, 8) the Boston Arts Acad-
emy Pilot School, and 9) the Quincy Upper Pilot
School. Eight of these pilot schools are currently in
operation, the ninth, the Quincy Upper Pilot School, is
in the process of securing a site.

The City has shown a strong commitment to the Arts
by opening a pilot school centered on the arts. In
September 1998 the Boston Arts Academy opened its
doors. The Arts Academy is the result of a great deal
of support and guidance from the Pro Arts Consor-
tium. Including all funds and the arts programs at
the Arts Academy, nearly $8.7 million will be spent on
the arts in FY00.

The budget for each pilot school is based on the aver-
age per pupil grade level cost by student category
(regular education, bilingual education, vocational
education or special education; special education is
further subdivided by student prototypes.) The per-
pupil cost allocated to the pilot schools includes all
instructional, administrative and support services
costs except for transportation and the cost of educat-
ing private placement students. The per pupil cost of
pilot schools students is part of the BPS operating
budget.

Horace Mann Charter Schools

There are two types of charter schools, Horace Mann
Charter schools and Commonwealth Charter schools
(see below). Two schools were originally founded as
pilot schools, but have recently been designated as
Horace Mann charter schools by the Board of Educa-
tion. These two schools, the Health Careers Academy
and the Boston Evening Academy are projected to
serve 344 students in FY00.

A Horace Mann charter school is all or part of a public
school operated under a charter approved by the local
school committee and local bargaining agent, granted

FY99 Issue & Initiative

Student Promotion Policy :
Im plement initial recommendations.

First Grade Student / Teacher Ratio :
Reduce from 28:1 to 25:1.

Texts and Instructional Materials :
Purchase in coordination with
curriculum frameworks.

Pilot School Initiative :
Expand the initiative.

Whole School Change :
Continue implementation of Cohorts.

New Financial, HR, and Payroll System :

Assist with the design of BAIS
and prepare for implementation.

Curriculum Frameworks :
Complete and implement.

Early Education Centers :
Open 3 New EECs in September 1998.

School-to-Career Program :
Maintain General Fund commitment &
seek alternate funds for expansion.

Teacher Evaluation :
Train principals & headmasters.

Year 2000:
Compliance forsystems and facilities.

Kindergarten 2:
Continue the policy of providing
extended day service.

Table 1:

FY99 Accomplis hments

Provided six-week summer programs for students
in grades 3, 5, and 8. Provided tutoring programs.

20 additional teachers were hired to implement the
lower 25:1 ratio in the first grade throughout the
school system.

Purchased textbooks and materials in the areas of
Social Sciences for the 8th grade, Science for K-
12, and Mathematics on all levels.

Opened the Arts Academy in September 1998.

Implemented Cohort 3 whole school change model.

Key staffmembers have participated in the entire
planning process, including the design of the chart
of accounts and the preparation for implementation
in FYOO.

Established frameworks to help teachers, 1)
identify needs, 2) improve instruction, 3) assess
progress, 4) employ professional development.

Opened 3 New Early Education Centers in
Roxbury, Mattapan, and East Boston.

Absorbed the School-to-Career Program into the
General Fund from external funds.

Implemented a centralized program to review and
assist principals and headmasters with teacher
evaluation.

A full facility and system evaluation has been
undertaken. Appropriate remedies have been
applied to mission critical systems.

The third year of transition to full day service for
Kindergarten 2 was implemented.

FY00 Issue & Initiative

Comprehensive Literacy and Math Initiative with

Transition Services :
Implement s ys tem-wide.

Second Grade Student / Teacher Ratio :
Reduce from 28:1 to 25:1.

Texts and Instructional Materials :
Purchase in coordination with curriculum
frameworks.

Pilot School Initiative :
Expand the initiative.

New Financial, HR, and Payroll System :
Implement BAIS.

Whole School Change :
Continue implementation of Cohorts.

Alternative Ed. & Education

of Older Students :

Provide programs in accordance
with taskforce recommendations.

Advanced Work Classes :
Increase the numberof classes offered.

2:00 to 6:00 Initiative :
Expand facilities and support.

Student Safety :

Address bus safety forthe youngest children.

Student Safety :
Address safety at high schools.

Student Support Coordinators :
Continue at high schools.

Tech Boston Program :
Increase commitment to Tech Boston.

Facilities Maintenance :
Increase level of facility maintenance.

Human Resources :
Improve organization & service.

Table 2 : FY00

FY00 Plan

Provide $21.8M from all funds for transition programs,
including after-school, summer, and in-the-classroom
assistance with a focus on literacy and math.

Hire Approximately 20 additional teachers to implement the
lower 25:1 ratio in the second grade throughout the school
system.

Purchase texts and materials for grades 9 and 10 for History
and Social Sciences, and Science instructional materials for
Bilingual students.

Open the Quincy Upper School ifan appropriate facility is
found.

Utilize the new comprehensive financial system, BAIS,
centrally and at the school levels.

Implement Cohort 4 whole school change model.

Provide for the implementation of taskforce
recommendations, including the education of older students
with an all-funds approach.

Provide for additional advanced work classes to all eligble
students in the middle schools.

Provide for custodial services and utility needs with the
expansion of 20 sites.

Provide bus monitors on all buses transporting children to
and from ELCs and EECs.

Provide 3 additional safety officers at the high schools.

Continue commitment to Student Support Coordinators with
general funds for FY00.

Continue commitment to Tech Boston program with general
funds for FY00.

Provide a 5% increase in funding for facility maintenance in
the schools.

Provide funding to reinvent organization & service.

by the Board of Education. A charter is granted for
five years and is renewable. Any educational assess-
ment of the charter schools is done by the state.
Charter schools must comply with state regulations on
testing and assessments. All charter schools will be
required to measure their progress against the goals
set under their charter and make a formal annual re-
port. In addition, there will be site visits to assess
each charter school’s progress.

A Horace Mann charter school annually submits a
budget request to the superintendent and school com-
mittee. The cost of Horace Mann charter schools is
included in the BPS operating budget. The Horace
Mann charter school shall not receive less than it
would under the district’s budgetary allocation rules.

Commonwealth Charter Schools

Commonwealth charter schools differ from pilot
schools and Horace Mann charter schools because
granting of their charter does not require the approval
of the school committee or school unions, and they do
not submit annual budget requests to school commit-
tees. Commonwealth charter schools are public
schools established by charters granted by the Board
of Education independent of local school committees,
in accordance with the Education Reform Act of 1993.
The costs of these schools are paid for by the City of
Boston, outside the BPS operating budget.

During FY99 1,918 Boston students were projected to
attend eight Commonwealth charter schools. In FY00
this enrollment is projected to increase by 296 to
2,214.

Five Commonwealth charter schools are located in
Boston: the Renaissance Charter School, City on a Hill
Charter School, the Neighborhood House Charter
School, the Pacific Rim Charter School, and the South
Boston Charter School. Boston students attend three
other charter schools located outside of Boston.
These charter schools are the Benjamin Bannecker
Charter School in Cambridge, the South Shore Char-
ter School in Hull, and the Somerville Charter School
in Somerville. Two additional Commonwealth charter
schools, the Conservatory Lab and Roxbury Prepara-
tory, are scheduled to open in FY00.

Beginning in FY99, there was a change in the method
of financing Commonwealth charter schools. In FY99,
the state absorbs 100% of the first year costs for new
commonwealth charter school students at new or ex-
isting commonwealth charter schools. In FY00 the
state was scheduled to absorb only 60% of the costs
associated with students who entered in FY99. The
percentage absorbed by the state was scheduled to be

reduced incrementally, until in the students’ fourth
year, when the district assumes the full tuition cost.
This schedule has been dramatically accelerated in
the Governor’s FY00 State budget. The Governor's
proposed budget indicates that Boston would pay 50%
of the first year’s tuition cost for Commonwealth char-
ter students, and then, in the students’ second year,
Boston would become responsible for 100% of all tui-
tion payments for the students’ subsequent years.

Boston will pay a projected $15.2 million in FY99 and
$18.1 million for FY00. State reimbursement is pro-
jected to be $3 million in FY99 and$1.5 million in
FY00.

External Resources

External Funds

Overall, the BPS is projected to receive $94.1 million
in External Funds in FY00, 14.1% of its total revenue.
The BPS receives external funds through formula
grants, competitive grants, reimbursement programs,
revolving accounts, and other grants. This funding is
projected to increase $10.7 million or 12.8% from FY99
to FY00. FY00 external funds projections are based on
conservative estimates since final decisions on FY00
federal and state budgets are still unresolved.

External funds are an important funding source to
spur professional development, which is an essential
component of whole school change. The BPS has pur-
sued expansion of professional development on sev-
eral fronts. Examples of this include the Annenberg
Challenge Grant, the Boston Plan for Excellence, and
the Eisenhower Professional Development funding.
With a variety of matching requirements, a multi-fund
approach is being used in many of these areas. These
programs provide teachers with many of the latest
teaching techniques and ideas.

Another example of the educational support received
from external entities is the work and coordination of
the Pro Arts Consortium which has helped form the
BPS Arts in Education policy. Over 75 professional
development workshops were offered to BPS teachers
to help support the integration and infusion of arts
activities into all core activities.

Students take advantage of more than 50 special arts
initiatives (programs, exhibits, performances, festi-
vals, etc.) throughout the system. These initiatives
are in creative writing, dance, music, theatre, and the
visual arts. They are conducted with the generous as-
sistance of grants, material donations, and thousands

of hours of time and energy volunteered by teachers,
administrators, and artists.

Chapter 70 Aid

The Education Reform Act of 1993 is a multi-year
commitment to increase and equalize funding for lo-
cal education. Since the FY94 state budget, the Edu-
cation Reform Act’s financing formula has affected
the amount of education aid the City has received.
Education Reform Act has also required the City to
spend at or above the education maintenance of ef-
fort, which it has done. The City of Boston received
$66.6 million in FY94, $81.6 million in FY95, $92.1 mil-
lion in FY96, $115.5 million in FY97, $144.2 million in
FY98, and $178.2 million in FY99. The average yearly
percentage increase up to FY99 has been 21.8%.

The Governor’s State budget for FY00 has $180.0 mil-
lion in Chapter 70 Aid for Boston, an increase $1.8
million, or about 1%. This increase for Boston is only
1.2% of the total state-wide Chapter 70 increase of
$155 million. This relatively small percentage in-
crease can be associated with many factors that can
be grouped into two general categories:

© Reduction in State Funding toward Chapter 70 — Original
statewide projected increases were about $245 million.
However, $90 million ($245M-$90M = $155M, above) has
been set aside for distribution in grant form, earmarked
for specific purposes or reimbursements.

© Formulaic Characteristics Associated with Boston — The
most fundamental influence on the level of Chapter 70 Aid
was the relatively small increase in BPS “foundation” en-
rollment of only 86 students. This enrollment figure had
increased by about 2,000 each of the previous years.
Meanwhile enrollment increased at higher proportions for
many other school districts.

Other factors in the Chapter 70 Aid formula, including
the implicit price deflator index and the municipal
revenue growth factor, also contributed to the small
projected percentage increase for Boston in FY00.
The statewide implicit price deflator index for FY00 is
0.34%. It was 3.9% for FY99 and 2.9% for FY98. The
municipal revenue growth factor for FY00 for Boston
is (a relatively high) 5.42%.

Based on these FY00 projections, between FY94 and
FY00, the City received an increase of $113.3 million
in Chapter 70 Aid as compared to the $165.9 million
by which the City has increased the School Depart-
ment budget in the same time period. (Figure 2.)

The City receives education aid as part of its total
state aid and it is directly passed to the City’s general
fund. As a source of revenue, the Governor's proposed
Education Aid to Boston, after it has been reduced by
charter school tuition costs, represents only about

Millions of Dollars
$140 Sperw cee ee ae

WB chapter 70 State Aid

$120

School Spending

$100, o7aann Dit

S00 ee

$60 © <uneas hin 7

SOM aE Ste

$0 ——

'95 '96 '97 '98 '99
Boston's Cumulative Chapter 70 State Aid
vs. Cumulative School Expenditure Growth
FY95 - FY99

Figure 2

30% of the total funding for the proposed FY00 BPS
operating budget.

Private Partnerships

The BPS has continued a long-running tradition of
working with numerous independent organizations to
help bring additional resources, expertise, and guid-
ance to the youth of Boston and Boston Public
Schools students. It is an important goal of the School
Department that by the conclusion of school year
1998-99 each school will have established a partner-
ship with not only a college/university, but also with a
business/foundation, arts/cultural organization and
health/human services provider.

According to the Private Industry Council (PIC), far
in excess of $20 million is contributed by companies
through in-kind contributions and services, and stu-
dent wages. Some examples of these types of partner-
ships are:

© Summer Jobs Program - Over 1,000 companies participate
in the summer jobs program, with many businesses offer-
ing multiple positions to the youth of Boston.
Approximately 11,000 jobs were provided to Boston's youth
in the surnmer of 1998—over 4,000 of those were provided
through the PIC.

© Technology Initiative - Over 100 businesses have contrib-
uted in the form of direct partnerships with the schools
and other forms of system-wide assistance.

© ReadBoston Initiative - Every week 1,000 volunteers are
tutoring children in reading through the ReadBoston Ini-
tative.

In addition to business partnerships, the BPS is the
beneficiary of a consortium of higher education insti-
tutions. According to the Boston Higher Education
Partnership, 28 colleges and universities form a con-
sortium that provides the largest amount of funding
and services to a single urban school district in the
entire country. This steadily increasing assistance
comes in the form of scholarships, pro-bono assis-
tance, and external grants.

In addition to colleges/universities and business part-
nerships, the School Department is also striving to
strengthen partnerships with arts/cultural institu-
tions and health/human services providers. Accord-
ing to the Boston Cultural Partnership, over 50
cultural organizations, ranging from internationally-
known cultural institutions to community based or-
ganizations to individual artists, offer programs to
95% of Boston Public Schools. About 74% of the stu-
dents served in these programs are at the elementary
level.

Formal Budget Procedures

Governance

The seven-member Boston School Committee is ap-
pointed by the Mayor to staggered terms and serves as
the policy-making body of the Boston School Depart-
ment. This structure was affirmed by the voters of the
City of Boston in a referendum held on November 5,
1996. The Committee appoints a superintendent who
serves as the chief executive officer of the Boston
School Department. The superintendent is responsi-
ble for management and supervision of the public
schools. The superintendent reports directly to the
School Committee and also serves as a member of the
Mayor’s Cabinet. At each school, school-site councils
have been established comprised of the building ad-
ministrator who chairs the council, parents, teachers,
representatives of collaborating institutions and, at
the high school level, a student. Their role is to assist
the principal or headmaster in decision-making pro-
cesses.

The Operating Budget Process

The annual Boston Public Schools operating budget is
the financial outline of the school system’s educa-
tional programs, services and operations for the fiscal
year. The operating budget is developed in accor-
dance with the goals and objectives approved by the
School Committee, and it is based on what the Super-
intendent, staff and community want the public
schools to accomplish during the fiscal year. The op-

erating budget serves as an operational plan, stated in
financial terms, for carrying out the goals of the
school system.

The public school operating budget is developed un-
der the following statutory schedule:

® The Superintendent shall submit to the School Committee
an annual operating budget for the next fiscal year by the
first Wednesday in February.

® The School Committee shall submit to the Mayor esti-
rates of the next fiscal year’s operating budget by the
fourth Wednesday in February.

© The School Committee may adopt, reject, reduce or in-
crease any itern in the Superintendent's recommended op-
erating budget. If the School Committee fails to take
action on the Superintendent's recommended operating
budget by the fourth Wednesday in March, the budget rec-
ommended by the Superintendent shall be deemed as if
approved by the School Committee.

e After approval of the next fiscal year’s operating budget,
the Superintendent shall submit the budget to the Mayor
who may approve or reduce the total recommended
budget, but who may not allocate among expenditures.

@ The Mayor must submit the school operating budget to the
City Council for appropriation by the second Wednesday in
April.

@ The City Council shall vote on the total amount of the ap-
propriation requested by the Mayor. The City Council
shall not allocate the appropriation among expenditures.

Capital Improvements

A major focus of the FY00-FY04 Capital Plan is to en-
sure Boston’s educational facilities are equipped to
meet the needs of the City’s families. As a result,
about $235.4 million is outlined for School facilities in
Five Year Capital Plan. In FY00, $32.9 million in new
authorization will be requested for BPS’ needs, in-
cluding technology enhancement, accreditation, and
general improvements.

Between FY94 and FY99, $197 million in capital dol-
lars were expended for school projects. Extensive
renovations to school facilities are constantly under-
way throughout the City’s neighborhoods, including
new roofs or major roof repairs, masonry work, and
new or repaired windows. Renovations to 14
schoolyards have been completed, with renovations
for 13 additional schoolyards being planned.

Capital investment in high schools has resulted, once
again, in all schools either maintaining or improving
their accreditation status in the last year. The Burke
High School received full accreditation after three
years of program enhancements and significant gains
in facilities, library technology and media services.

The City’s commitment to its high schools is further
demonstrated in the total renovations to East Boston
High School, Hyde Park High School, and Boston
Latin School. East Boston High School is under con-
struction and the project includes construction of a
new gym and cafeteria, expansion of the library and
media center, mechanical and life safety system up-
grades, and the implementation of a comprehensive
technology plan. Hyde Park High School is also under
construction and is receiving a similar scope of up-
grades and renovations. At Boston Latin School, the
project includes the construction of an additional
space, which will house the cafeteria, art and music
classrooms, and practice and performance space for
the band and chorus. This project is scheduled to be-
gin construction in the summer of 1999. Together,
these three projects represent an investment of ap-
proximately $90 million.

Finally, the City has made great strides towards
achieving the Mayor's goal of adding technology
throughout the schools. Complete electrical upgrades
and technology wiring began in FY99. The plan calls
for schools to receive appropriate electrical and tech-
nology wiring upgrades in future years. Fortunately,
some of that work is discountable 80-90% through the
FCC Universal Service Fund.

City Capital Plans from FY99 and prior years have pro-
vided for a number of major accomplishments includ-
ing:

@ Providing full electrical and technology wiring upgrades at
7 schools;

In addition, the FY00-04 Capital Plan includes the fol-
lowing items in FY00:

@ Siting for 4 additional new schools;

e Begin construction on a third major high school renova-
tion, Boston Latin School;

These items are highlights of school projects in the
five-year Capital Plan and are accompanied by a wide
assortment of maintenance projects for schools in-
cluding, windows, roofs, and boilers.

School Building Assistance

The state’s School Building Assistance (SBA) pro-
gram, managed by the Department of Education, is
designed to assist cities and towns in building new
schools or in renovating existing ones. Under the cur-
rent program the City is reimbursed for 90% of the
cost of eligible construction projects.

The SBA program is divided into two classes of proj-
ects: capital construction and major reconstruction.
Capital construction includes new construction,
building additions, and substantial renovations to ex-
isting schools. Major reconstruction includes projects
that typically involve a single trade, such as a roof re-
placement or cover a type of improvement such as
handicapped accessibility.

Capital construction projects are prioritized into
three categories. Category 1 projects support and
promote racial balance plans; Category 2 projects ad-
dress overcrowding and increasing enrollment; Cate-
gory 3 projects address significant other needs.
Criteria including the existence of dual issues (.e.,
racial imbalance and overcrowding), and the loss or
potential loss of accreditation further prioritizes each
category.

Major reconstruction projects are funded on a first in,
first out basis based on the date of application. State
funding for this program has not kept pace with proj-
ect demand and a significant backlog and waiting list
now exists. Today, cities and towns wait several years
before receiving the first reimbursement payment.

The reimbursement period generally corresponds to
the term of outstanding debt for each school project.
Reimbursement payments are made to the City’s Gen-
eral Fund and are included as part of the annual State
Aid package. In FY00 reimbursement payments are
forecast at $17.2 million. Reimbursement payments
due between FY01-FY04 are forecast at $76.2 million.

The Technology Initiative and Universal Serv-
ices Funding

The City of Boston and Boston Public Schools have
committed to wiring schools to the Internet and pro-
viding students with as much access to technology in
the classroom as possible. This commitment involves
a vast array of planning, communication, coordina-

tion, resources, and partnerships among the BPS, City
departments, communities and private companies.

The Federal Communications Commission (FCC) has
established the Universal Services Fund (USF) to as-
sist school districts with communications and Inter-
net access, infrastructure, and services.

As a general background, this funding was formerly
directed toward providing telephone companies with
incentives to wire isolated rural areas that would oth-
erwise be cost prohibitive. As most of the United
States is currently wired for phone service and many
schools are not wired to the Internet, the FCC decided
to shift the majority of these funds toward helping
schools obtain Internet access.

The USF is a fund that reimburses school districts for:

@ Internet Access: periodic charges for communication lines
and charges from Internet Service Providers (ISPs);

© Infrastructure Costs Associated with Obtaining Internet
Access: one-time construction costs specifically related to
networking, and incurred within a school building to wire
the building for technology.

This list of reimbursable items provides significant as-
sistance with jump-starting the technology initiative,
however it does not address the operation costs such
as:

@ Planning - Development and design;

® Security — Hardware lockdown devices and electronic se-
curity devices;

These portions of the technology initiative are pro-
vided with resources in the BPS Operating budget and
the City of Boston Capital Plan. The FY00 BPS Oper-
ating includes more than $3 million for technical sup-
port and professional development. The FY00-04 City
of Boston Capital Plan forecasts for spending for FY00
include $5 million for hardware and software and over
$10 million for network infrastructure. These funds
are combined with funds and services received from a
massive series of partnerships at the system and
school levels.

The level of USF reimbursement is dependent on the
number of impoverished children in the school. The
level of poverty is measured by the number of children
receiving “free or reduced lunch” in the school. The
vast majority of the Boston Public Schools qualify for

the maximum reimbursement under this standard.
The maximum reimbursement is 90% of qualifying
costs incurred. So, depending on the age and make-
up of a school building, the USF program may reim-
burse anywhere for 20-80% of the costs associated
with providing Internet access and adequate power to
every classroom.

The costs associated with schools building these net-
works is not cheap. Many of Boston’s older schools
currently have:

@ Inadequate electrical distribution throughout the build-
ing;

@ Only a few phone lines.

These infrastructure items combine with the unique
nuances of each school to dramatically increase costs.
The per-square-foot cost of wiring an older school
with appropriate technology wiring and electrical
service can be 200% or 800% of the per-square-foot
cost of wiring a modern building.

The vast majority of BPS schools are older schools,
with minimal electrical service and distribution. With
these dramatic costs on the horizon, the Technology
Taskforce will undertake a wholesale evaluation of
the BPS technology plan. The plan will focus on
evaluating and balancing programmatic needs and
new networking technologies. The product of this fo-
cus will drive the initiative to continue on the most ef-
ficient and effective path for the future.

FYO0 Budget and Performance Goals

Performance Measurement at the City of
Boston

Goal setting, performance measurement, and program
evaluation are ongoing and evolving activities of the
City of Boston. These activities are highly integrated
with the budget process because of the importance of
linking oversight of programs’ service levels to budget
oversight and are at the heart of the City’s capacity to
align its resources in order to maximize the value of
its services.

The Office of Budget Management (OBM) compiles
performance data for 200 programs across 52 city de-
partments. Each program has articulated objectives
and each objective in turn has outcomes clearly iden-
tified and measured. Relevant ancillary measures
(called output measures or service indicators) which
count related activities are also tracked.

Budget Development & Approval

The basic format of budget development begins with
the identification of departmental objectives. OBM
works with each department to set clear performance
goals for the upcoming fiscal year. These goals should
be relevant to the department’s mission and reason-
able in terms of attainment, but still challenging to
achieve. For each objective, the department should
identify at least one key measure of success or out-
come.

Department managers, who prepare annual budgets,
are ultimately responsible for determining levels of
service that can be supported with the resources pro-
vided. For example, the manager may determine
whether two or ten special events can be supported.
Managers define baselines, identify service trends,
and set specific measurable service levels to be ac-
complished. This process may involve adjusting
amounts budgeted for programs, redesigning pro-
cesses to increase productivity, or increasing or de-
creasing programs to adapt to changing priorities or
resources.

With the information on trends in services and re-
sources, program budget decision packages are pre-
pared for the Mayor’s approval. These “service
bundles” aid decision-makers with final resource allo-
cations, by defining costs and tradeoffs under alterna-
tive service delivery options.

FY00 Budget and Performance Goals Process

The program budget, including all departmental ob-
jectives and outcomes, is submitted to the City Coun-
cil for approval. The final approved budget marks the
Mayor's commitment to provide the citizens of Boston
with an effectively funded scope of services.

Accountability for Performance

Budget implementation follows City Council approval.
Throughout the fiscal year, reporting, evaluation and
analysis play key roles. The departments and OBM
monitor financial and operational performance on an
ongoing basis via monthly Expenditure Variance Re-
ports, Revenue Variance Reports, and Management
Information Reports (MIRs) to ensure accountability
for performance.

Reported performance data from the current year are
used to determine whether and how goals should be
modified for the upcoming fiscal year. Changes are in-
corporated into the goal-setting process, and the en-
tire process begins again.

The Evolution of Outcome Measures

Since 1988, the City has been refining how the impact
of its work is measured. This is evident in continued
emphasis on a conceptual shift toward measuring out-
comes; that is, the benefits that departments provide
to residents and visitors.

Since 1995, the Menino Administration has steadily
shifted the focus of performance measurement from
tracking department operations as measured by in-
puts, outputs, and workload indicators, toward assess-
ing the impact of City programs on the quality of life
in Boston as measured by outcome indicators.

Street cleaning provides an example of the shift to-
ward measurement of outcomes. As Figure 1 shows,
measurement has evolved from counting the number
of street cleaning machines (an input), to calculating
the amount of debris removed from streets (an out-
put), and finally to measuring the cleanliness of
streets (an outcome). While input, output and work-
load measures are important indicators of efficiency
and continue to be tracked, what ultimately deter-
mines success for the street cleaning program is the
outcome: the resulting cleanliness of City streets.
(Figure | and Figure 2.)

Measures = Measures §§# $=Measures ~
* teapetansateansten ea patipcnR Rea Shenae: * htineseomreneatnee ERS
Machines». es of :
Receptacles » ' &

Figure 1

Goals Assessment and Budgeting

Boston's budget process integrates goal setting, pro-
gram budgeting, and performance reporting processes
into a single annual cycle, linking service outcomes to
resources. This integration helps ensure accountabil-
ity for services, as well as consistency between the in-
formation used for program management and publicly
available information about City objectives and serv-
ices. The successful application of these activities de-
pends not only on defining the conceptual direction,
but also on an ongoing process of examination and
practice of the activities by program managers.

For FY00, Boston has followed and enhanced opera-
tional assessment and review processes developed in
previous fiscal years. One such model was a compre-
hensive goal-setting analysis called the Mayor's Op-
erations Review Exercise (MORE), undertaken by all
departments for FY99. Prior to the FY99 budget cycle,
departments were required to review existing activi-
ties and services in order to answer the following ba-
sic questions:

The MORE process yielded a detailed listing of spe-
cific services, supporting existing and proposed activ-
ity areas across all City departments. Data were used
to prepare service level additions, deletions, and

changes to be included in mayoral decision packages.
The process was also an opportunity to evaluate the
efficacy of departmental objectives and performance
measures, the bulk of which were then in use for their
third consecutive fiscal year. Conducted just over a
year ago, the MORE process and its results remain a
useful point of reference and continues to inform our
thinking about goals assessment.

Another effective model was the City’s use of outside
expertise, including the academic and business com-
munities, as when Boston co-hosted the Setting the
Standard conference on performance measurement
with Northeastern University in the summer of 1997.
Leading practitioners of performance measurement,
representing 19 organizations of varying size from all
over the country, attended and shared their perform-
ance measurement challenges and successes. Re-
cently Boston City government returned to academia
to concentrate on mission and service assessment at a
series of two day-long seminars at the Harvard Busi-
ness School (HBS). City department heads and top
managers were invited to plan together for upcoming
challenges and opportunities in preparation for the
FY00 budget cycle.

The first of these seminars was a planning session
held on November 6, 1998 to generate and explore
program ideas in interdepartmental working groups.
This session provided a forum for articulating and re-
fining any new initiatives to be presented by depart-
ments during the upcoming budget process. A second
session, held January 14, 1999 was convened in re-
sponse to a survey that identified “measuring success”
as a top priority among most managers, on par with
planning activities. The session examined Mayoral
Priority Topic Areas, and included a focus on perform-

1750 aaa

1500

750

FY88 FY97 FYOO
Total Performance Measures
Selected Years FY88 - FYOO

Figure 2

ance measurement. The seminars were coordinated
through the office of the Chief Operating Officer and
boasted representation from almost all City depart-
ments, demonstrating that performance outcome
measurement is as necessary to planning and man-
agement as it is to budget oversight.

FY00 Service Assessment and Actions Plans

In keeping with the format of integrated goal setting,
program budgeting and performance reporting, de-
partments were asked to prepare budget requests in-
corporating elements of previous goals assessments as
well as topics recently developed and examined at the
HBS seminars.

To prepare for the process of budgeting for FY00, de-
partment heads were provided a Service Assessment
worksheet (developed in conjunction with the semi-
nars) to guide and help sharpen thinking about meas-
uring success. OBM worked individually with each
department in order to refine articulated objectives
and outcome measures.

During the past several years, the City has focused on

improving service outcome measurements and becom-

ing a more practiced user of these data with each it-
eration of the budget process. The progress of this
endeavor is evident from the continued attention
given to communicating service outcomes clearly, as
well as from the high level of participation in forums
provided for planning and discussion among City de-
partments.

Using the Data

FY00 will mark the fifth full year in which all City de-
partments have reported the refined outcome data.
The current package of performance measures has
evolved to the point where it now provides a rich pic-
ture of the quality and method of municipal service
delivery in Boston.

OBM has developed technological tools to manage fi-
nancial and performance data more effectively to en-
courage management by information and ease the
burden of gathering, analyzing, and sharing data.

The implementation of integrated budgeting software
has enabled departments and OBM staff to perform
budget-related tasks on-line. As a result, a depart-
ment now submits a budget request to OBM electroni-
cally. The request is reviewed and modified through
numerous iterations, without ever having to exchange
a piece of paper with the OBM analyst. Similarly,
monthly variance analyses of financial data is now
prepared on-line, improving analytical capability.

Staff can now spend more time on analysis instead of
“chasing” data. The potential exists to dovetail the
collection and analysis of performance data in the
same way as financial data once there is consensus on
measurement within departments, and the monthly
process of reporting has become routine. It is our
goal to develop and maintain automated performance
reporting.

fond, : 7
A) ; ;
on So ey , of

Fy, 7 ha vag: Beyer ain't roma DAGQs WOT Wee TR
oh i oe Totem a py Ls ia, oft ale "yiheioe

ntl =. lab opagartohicy Sw sedan pasate iodtias oe prerneyeertl (rn: cir ore
> POS /AAN LITE OT) Wry BEL fr Onan) af ‘ew Orne if ae Tat art aa mgt Bits a _ ¥
: Pex ae berate: AT al ey 7 ah ult 1 @ apnbnte ble ie os ROY ~ ii
, pe te woh, led unity: va, ite ¥ wii a. On CER area np sd. tabed. nadie ‘
wre Ay aust Ain td a van a ate 7 ut Ts ar , ie oe haleerenn deal 2045; tla (aval Tn iste age

ate He ans som Pigalle #32" PUM RAMI HOM smeEPRH CAA wsivind TO
7 ——e. . t a! mh arnoes

a: 8, 2
“ge i Suttle Ry ced OU earthed hod itew poy aMh ©

7 pin, epee Ras nah geet Peed) yaiidab tones ive _
te, - 7 »
4 ah , ‘ne " yi Aine inns ORR) & aie s orc — -
- . ae q ’ .
i —" a Wy CeCe ge ORE Pe! Tm RRO erin

aaip PY Taina ete ia leet PV oy yO Pe ly

F LA my td (= » vee ivapems Ail)

ON leh AR hE SO muerte oY

} 1D ae 6) iris NARla\. wa ; if ie #1 yy

put wr? GAY Wi b EAPO batcl ooh Lil
et WO ea tira! eters! CP Sie (etal Pa =
movi wy HAD pawl WE seid Gol ; a -

re) o oe yAlevt by peer ieal
| s (htin, * ve
iF xue% i) d WA ; iy i ben a
ta vedi wi) pell Wh Pak? ef cere orn’ + ndberiy } a ,
= ' moved Cte eon enue) amon! ito Sorvteg cin ron 7 et
- ) ; Jt iad iw Wee H09 FE! ie What: oi ise rei & ha = os
ot : hp AG bain here ee 3 WP) 44 fhe >. hark 1” wy
: ) a Se a a roe i, ee
pA) Hie ‘ ; ‘oA eae
HP ey i hy NAP) ah ARALT (er OF ree > aie: t :
; iy wy 4 2 os —
: watt tut bh 1 Wat isn ends tinh BRT? 7 7 q
~ a 7 7 _
; Chet Yalta tien WB th A at 15
val ta the eivancing © eel any ei : ea)
: ije ! “si aC rit) tii ¢ - ;
, wl
‘ ‘% wees fi i o« J QF
‘Wat ier iT ;
' ny te erat, 1. ar BN a ee : '
¥ \ 5 i i ay ’ 7 7
| Ta oe) Kew Av =
at! Sys ob owt +a +r a yavint ; : 7
ai ive ’ o) -
, Cay culendoee rang arnt oP 7 a af:
j ' ; uf ! ® > j
h tren Att 8 Cub initiron Bans 9 Bey AS 8 Deirterre a;
® \ fal v7 ’ ve

'
i>
; ingen Paydas, ing Wy i titan bie Ais ij Wig} ly hk j (al .
ha eT | PX ’ A Na f ree hub Ss & Neal
"ie. 4 ni pains ,

7. :
maoini sew iveqyleyyl oe -

is a pelea taki

Aeoriimets ot PAe To! 60 Lhe Pe eee! oe ; i |
i otisete is were Pepin Gite oole) ‘oo : sd esittiin y

| bre hi ree i cvos >e Giewig nadie
quire . ae

kd
+ ~

® OQcr ats (ices UM Gita eee iy
pat three ue pond pee INE of lal a
® ly "Hee Ties air idey ot rere ere eG:
‘iow mle), tere port. que vEertiaty?: i = on
TN oy Pigeeeprenve ws wae > ihe
wo efaeteds) Smyid Saw tebe

PLR GL 15) i

Financial Management

Financial Management of the City

Managing the City’s finances is both a strategic and
operational challenge. Strategically, the finances
must be managed to accommodate fluctuations in the
economy and resultant changes in revenues. Opera-
tionally, the City must put in place clear financial
goals, policies, and tools to implement the strategic
direction.

Over the previous thirteen vears, the City’s manage-
ment of its finances has resulted in an upward trend
in general fund equity. This trend was interrupted
only by two events: the dramatic state aid reductions
in FY91 and FY92; and, in FY96 as the City adjusted its
books for the merger of its two public hospitals with a
private hospital to form a new private entity. It is ex-
pected that the latter event improved the City’s future
financial outlook by shielding the City from the likely
growth in hospital subsidies that would have been re-
quired without the merger. (Figure 1.)

Millions of Dollars
$100. 4a. nt ees ee ee

TUG at yaa ne na

‘89 ‘90 '91 ‘92 '93 '94 '95 '96 '97 '98

General Fund Equity (GAAP Basis)
FY89 - FY98

Figure 1

Deciding to build the convention center also called
upon the financial management skills of City officials.
Sharing a significant portion of the future cost with
the state in the plan for a new convention center in
Boston will be accomplished without impairing the fu-
ture delivery of city services. The City also absorbed a
large increase in its pension liability due to a switch
from the state to the city for funding the cost of living
allowances given during FY99 and beyond. This in-
creased liability was built into the City’s pension fund-

ing schedule without impairing the delivery of the
current level of city services, and also without sacri-
ficing the conservative pension funding assumptions
that the City has maintained since the early 1990's.

Below are descriptions of some of the financial man-
agement tools the City has utilized to achieve positive
results.

Strategic Financial Management

Maintaining a healthy financial base that fully sup-
ports City services according to mayoral priorities re-
quires constant vigilance. This work is reflected in
balanced budgets, restructuring and reshaping City
services, new financial management systems, efforts
to secure sound recurring revenues, and responsible
spending adjustments in light of revenue growth limi-
tations. Inevitable fluctuations in the economic cycle
mean that Boston must expect and be prepared to af-
firmatively tackle the financial challenges ahead.

The City’s revenue growth has been strong since FY94.
Consequently, Boston has been and continues to be in
a solid position to maintain its current level of serv-
ices. Due to shifts that can quickly occur, whether in
state policy or in the regional economy, the City re-
mains alert to potential reversals in its fiscal pros-
pects. Consequently, the City is taking the following
steps to maintain fiscal health in the years ahead.

Strategic Economic Development

At the core of city government finances is a healthy
Boston economy for all citizens. A critical area for
economic development in Boston is the building of a
new convention center. With the leadership of the
Mayor, Governor, and legislative leaders, the bill for a
new convention center in Boston passed at the state
house. Recent passage by City Council of a $157 mil-
lion loan authorization sets in motion the City’s con-
tribution toward overall funding of the convention
center project. This funding will cover costs of land
acquisition and site preparation. The loan will be
supported by increased hotel excise revenue (from in-
creased rates and from new hotels) and from other
new revenue sources. The Commonwealth will be
covering the cost of construction.

Additionally, as interest in commercial development
in Boston heats up, the Mayor has put all involved on

notice that decisions on when and where and what to
build will be made with the interest of the City asa
whole in mind.

Reorganize and Consolidate City Government

Implementation of the cabinet structure was a first
step in reshaping City government to reflect the real
needs of our businesses and citizens. The next step in
this process requires each cabinet officer to find bet-
ter, less expensive ways to meet these needs. Several
initiatives are already in place, and more are in the
planning stage.

Invest in Infrastructure To Improve Opera-
tional Efficiency

Schools, libraries, and fire stations stabilize and an-
chor residential neighborhoods. Additional capital in-
vestment strengthens these anchors. But capital
investment can also be a vehicle for improved service
delivery efficiency, thereby reducing demands on the
operating budget. For example, as a means of improv-
ing operating efficiency, the City assesses on an ongo-
ing basis its technology needs and investments, as
well as energy and utility systems needs and invest-
ments.

Diversify the City’s Revenue Stream

Eighty percent of total general fund revenue comes
from just two sources, the property tax and state aid
from the Commonwealth. Both of these revenues are
strictly controlled by state law and state legislative
action. Therefore, the City remains alert to the possi-
bility of diversifying its revenues. For example, in or-
der to support the funding for the convention center
approved by the legislature during FY98, rather than
drawing upon the current revenue base, new City
revenue sources were established and earmarked for
convention center funding. Among the city and state
funding sources is an increase in the hotel excise in
Boston and Cambridge, the full hotel excise for new
hotels, the earmarking of certain state taxes in a con-
vention center district, a car and truck rental fee, and
the sale of additional taxi medallions. These revenue
sources are targeted at those who will use the conven-
tion center or businesses that will profit from conven-
tion center activity, rather than burdening city
residents. In spite of the increase, the hotel tax rate
remains competitive with other major U.S. cities.

Protect the City From Sudden, Unexpected Ca-
tastrophic Financial Losses

Risk management efforts work to protect the City
from sudden adverse financial impacts, whether
caused by a natural disaster, workplace injuries, a
drop in revenues, or sudden cost increases.

Risk prevention efforts take place in all departments,
working to minimize any unexpected losses to city as-
sets. For example: back-up systems are maintained
for computerized data; the City’s safety & wellness
program addresses safety issues for employees and
property; the City’s municipal police maintain and im-
prove citywide security systems. Specifically to pre-
vent direct financial losses: efforts to minimize
expenditures include diversification of vendors and
long-term contracts; revenue strategy pursues diversi-
fication of revenue sources; debt strategy maintains a
conservative debt ratio. Even more specifically, in
1997 an agreement made with the Retirement Board
included language that they will consider the City’s fi-
nancial situation before implementing new COLA in-
creases.

Risk financing strategy targets how the City then pre-
pares itself to fund the financial impact of an un-
known future event The strategy puts appropriate
mechanisms in place where needed, including re-
serves and commercial insurance. More details are
described further in this chapter.

Achieve a More Rational Separation of State
and Municipal Obligations

Local policy judgments, rather than state mandates,
must drive financial decisions. The City’s greater
than average share of county corrections costs, and
the cost of state mandated charter schools are two
clear examples of vulnerability to state mandates that
do not necessarily reflect local priorities or ability to
pay. The City has fought for and received a reduced
share of county correction costs in the past but a sub-
stantial inequity still remains. In FY99, the state rec-
ognized the cost impact of charter schools on hosting
municipalities by partially reimbursing hosting com-
munities for the cost of charter schools.

In recent years, the state itself has pursued a more ra-
tional separation of state and municipal obligations.
In June 1997, it withdrew from any obligation for fu-
ture funding of cost of living adjustments for local
government retirees. Meanwhile, it has continued to
increase its support for local public education in
which it bears responsibility for equalized and ade-
quate provision of public education.

These six items; strategic economic development, re-

organization and consolidation of City government, in-

vestment in infrastructure, a more diversified revenue
base, protection against catastrophic costs, and ra-
tional separation of city and state obligations are pre-
requisites to the City’s future financial health.

Responsible Officials and Agencies

Boston’s financial operations are ultimately directed
by the Mayor. The Mayor is the chief executive officer
of the City and has general supervision of and control
over the boards, commissions, officers, and depart-
ments of the City. The City’s Chief Operating Officer
directs administrative services and labor relations.
City budget appropriations for all departments and
operations of the City and Suffolk County, except the
School Department, the county courts and the Regis-
try of Deeds, are prepared by the Office of Budget
Management, under the direction of the Chief Finan-
cial Officer.

Six other departments which are included in the
Chief Financial Officer’s Cabinet have major roles in
the City’s financial structure.

The Treasury Department collects revenues due to
the City and Suffolk County, and pays all amounts due
for payrolls and to outside vendors. The Chief Finan-
cial Officer serves as the City’s Collector-Treasurer.
The Treasury Department also manages the invest-
ment of City funds, and supervises borrowings by the
City in the form of either short-term or long-term
debt.

The Auditing Department maintains internal controls,
manages grant funds, provides financial reports,
maintains the financial records for the City and
County, and approves all payments made by the City
and County. The Auditor is an ex-officio member of
the State-Boston Retirement Board.

The Assessing Department, managed by the Commis-
sioner of Assessing, supervises the valuation, for tax
levy purposes, of all real and personal property lo-
cated in the City.

The Office of Budget Management, in addition to
overseeing the operating budget, also prepares and
monitors the City’s capital plan and coordinates the
long-range capital planning activities of City, County,
and School departments.

The Purchasing Department procures all supplies,

materials, and equipment for City and County depart-
ments.

The retirement system is overseen within the Finance
cabinet through the Retirement Board.

Three decision-making bodies also fill prominent
roles in the City’s budget process. The legislative
body of the City is the City Council, which consists of
13 members serving two-year terms. Four are elected
at-large and nine are elected from geographic dis-
tricts. The Council may enact ordinances and adopt
orders which the Mayor may either approve or veto.
Only the Mayor can originate appropriation orders.
Except for orders borrowing or appropriating money
and for local adoption of a state statute involving the
expenditure of money, the Council may override a
mayoral veto by a two-thirds vote. The Council may
reject or reduce a budget or budget item submitted to
it by the Mayor, but may not increase it.

The City’s public schools are under the control of the
School Committee which is appointed by the Mayor.
The mayoral appointed governance structure was re-
affirmed in a 1996 referendum by a 70% to 30% mar-
gin. The School Department operating budget is
submitted to the Mayor and City Council and subject
to their approval as part of a budget process parallel
to, but separate from, the City and County.

Until FY91, the School Department regularly incurred
operating deficits. Chapter 613 of 1987 placed
stricter controls on the School Department’s appro-
priation process, in an attempt to limit the potential
for overspending, and strengthened the powers of the
Superintendent vis-a-vis the School Committee. The
Department, however, continued to deficit-spend. As
a result, the City needed to ensure that other City
spending remained below available revenues in order
to offset the Schoo] Department deficits. These an-
nual School Department deficits continued through
FY90, ending only with the creation of an appointed
School Committee accountable to the Mayor.

The Boston Public Health Commission is appointed by
the Mayor, subject to City Council confirmation. It is
responsible for the implementation of public health
programs in the City and provides financial support
for various health services. The Boston Public Health
Commission must submit a revenue and expenditure
budget to the Mayor. If and when the Mayor accepts
the budget (essentially the deficiency between the
revenues and expenditures), then it is submitted with
the rest of the City and County budget to City Council.

Financial Administration

The City has established a system of internal manage-
ment controls. These controls are designed to maxi-

mize revenue collections, manage operating and
capital spending, evaluate infrastructure needs, and
formalize the City’s internal procedures. Major com-
ponents of the City’s system of financial management
controls include:

Capital Panning

The Office of Budget Management’s Capital Budgeting
Program (CBP) is responsible for managing the capi-
tal budget of the City. It has overseen the significant
increase in the level of infrastructure investment, re-
sulting in the protection and preservation of the City’s
capital assets and the creation of jobs in the construc-
tion sector. CBP’s mission is to evaluate the condition
of the City’s capital stock, forecast the timing and fi-
nancial requirements of new construction and reha-
bilitation, and recommend allocation of current and
future resources to meet the City’s infrastructure and
capital requirements. Resource availability and capi-
tal needs are assessed frequently and appropriate
planning responses are taken. For example, there has
been a greater need for construction and renovation
of schools due to expanding enrollment, educational
initiatives and accreditation needs, and this has been
done with a focus on maximizing the reimbursement
from the state’s school building reimbursement pro-
gram. CBP evaluates and refines the relationship be-
tween the City’s capital needs and resources as the
City moves through each fiscal year. This process is
documented by an annually updated five-year capital
plan. Since FY99, the proposed capital plan has been
integrated with the operating budget. The FY00-04
Capital Plan reflects the administration’s commitment
to comprehensive planning and investment by spot-
lighting projects ranging from future economic devel-
opment projects to strategies for neighborhood
revitalization.

In addition to its planning functions, CBP also plays
an ongoing project oversight and supervisory role dur-
ing the implementation phase of its capital projects.
CBP reviews and approves all capital contracts and
monitors project costs and schedules to ensure the
adequacy of available funding sources.

Program-Based Budgeting

Since FY88, the City of Boston has used a program-
based budgeting system to track expenditures and
service levels by major functions or programs. This
budgeting system complies with the standards of the
Government Finance Officers Association, which has
consistently recognized the City’s efforts with its Dis-
tinguished Budget Presentation Award.

The City has built on this base of budget and perform-
ance information to design a system of departmental
accountability for service outcomes, making sure serv-
ices are delivered at the level expected, with a focus
on customer satisfaction and service efficiency. OBM
plays a central role in the collection and analysis of
performance data, ensures proper documentation of
results, and assists departments in pursuing opportu-
nities for improvements. All financial commitments
by departments are first reviewed by OBM for confor-
mance with service priorities and funding availability.

Debt Management

The Treasury Department manages all City borrow-
ings. The Treasury Department has focused on the
timing of borrowings to take advantage of favorable
market conditions and has carefully managed the Ci-
ty’s cash flows to help eliminate the need for short-
term borrowings. The Treasury Department has es-
tablished a series of debt management guidelines.
The guidelines set forth the City’s management poli-
cies toward rapidity of debt repayment, debt afforda-
bility, the limitation on the level of variable rate debt
the City will employ, target savings for refundings, and
reporting to the financial community and the rating
agencies.

The City uses a comprehensive, interactive debt ca-
pacity model to assist City debt management adminis-
trators in evaluating the potential impact of debt
issues on cash flow, credit and statutory debt capacity.
As of June 30, 1998, the City’s debt burden (net direct
debt to assessed property value of $36.05 billion) is
currently 1.41%. The City’s net direct debt per capita
stands at $913.21.

Two mainstays of the City’s positive debt service posi-
tion have been the relative stability of the annual debt
cost and the rapid retirement of debt. The City’s an-
nual debt cost has remained under 7% of total general
fund expenditures since FY88, and in any given year
during that period at least 40 percent of principal out-
standing has been scheduled to be retired in five
years, and 70 percent in ten years.

Other factors have contributed to this favorable debt
position in the recent past. First, the City took maxi-
mum advantage of low interest rates and issued three
large refundings of the City’s general obligation debt
in February 1993, February 1994 and in April 1998.
Second, the City slowed down the rate of capital ex-
penditures in response to reductions in local aid in
FY90-92, without making the fundamental error of
abandoning capital spending altogether and thereby
allowing the infrastructure to deteriorate. Third, in

¢ Si ta" & Mi ia ti ta tg Seems oe net

spite of the early 1990’s recession and two straight
budgets with reduced revenue, the City maintained its
improved bond rating and thus maintained the City’s
image in the capital markets. Fourth, the City has
managed its cash flow such that short-term borrow-
ings were not needed in each of the last twelve fiscal
years. This has been possible mainly because of the
switchover from semi-annual to quarterly billing for
property tax and from semi-annual to quarterly distri-
bution of local aid. The overall success in the City’s
debt management contributed to bond rating up-
grades in 1995 and 1996, and, most recently, in Octo-
ber 1998 the city was awarded ratings of Aa3, A+ and
AA- from Moody’s Investors’ Service, Standard and
Poor’s and Fitch IBCA, Inc., respectively. The City
also utilizes lease-purchase financing of equipment
with a two to seven year useful life. Annual financing
has totaled $8 to $12 million for vehicles, computers,
and lighter equipment. Financing for both FY99 and
FY00 will increase to $14 million due to the inclusion
of school buses.

Pension Management

As required by law, the State-Boston Retirement Sys-
tem, of which the City is the largest member, performs
a full valuation at least once every three years. The
system uses the valuation to determine the total sys-
tem liability and the annual funding requirement.
The SBRS hires an investment manager who oversees
the various fund managers of the SBRS pension as-
sets. Positive investment performance for the SBRS
has allowed for a steady upward trend in the percent-
age of pension liability funded. In recent years, the
SBRS has averaged a rate of return on investment of
assets well in excess of its 8% assumption. Over the
years, the City has worked with the SBRS to maintain
a conservative and responsible pension funding
schedule. This has included maintaining a conserva-
tive investment rate of return assumption, and short-
ening the funding schedule by eight years.

Risk Management

Risk financing is the last step in the City’s risk man-
agement process, which first works to avoid, reduce
and minimize unexpected losses to City assets.
Whether unexpected losses are due to natural disas-
ters, workplace injuries or a sudden drop in revenue,
their ultimate impact is financial and must be funded
from one or more sources, depending on the type, size
and frequency of loss. The City’s risk financing strat-
egy aims to increase departmental awareness and ac-
countability for risk prevention, protect individual
departments from the impact of unexpected losses,

and protect the City as a whole from a catastrophe
that would adversely impact service delivery. The fol-
lowing are certain types of losses and how they are
funded.

Budgeted Losses

Many unexpected losses happen with such frequency
in an organization as large as the City that the total
cost is predictable enough to be budgeted. This is
true for the City’s typical costs for illness and injuries,
legal claims, and property losses.

The cost of preventing, managing and paying for em-
ployee injuries and illnesses is high, exceeding $150
million in FY98 due to the large number of City em-
ployees. The Office of Human Resources (OHR) man-
ages healthcare costs through competitive bidding,
diversification and annual negotiations of benefits
with five healthcare plans, and a self-insured indem-
nity plan. The average per employee cost increase for
the past six years has been contained at 4% per year.

Citywide employee injury costs, totaling over $40 mil-
lion per year, are managed by OHR and the Police and
Fire Departments, assisted by a centralized medical
bill and case management computer system. Individ-
ual departments pay for their own injury costs, unless
an event is unusually high in cost and threatens their
operations. The Fire Department, responsible for 40%
of the City’s injury costs, is currently tightening its in-
jury management system through various efforts, in-
cluding hiring a new injury manager.

The City’s low liability claims costs total between $3
million and $7 million annually, paid for through a
combination of annual budgeting and reserves. Man-
aged by the City’s Law Department, legal claims are
limited by MGL Chapter 258 which caps the City’s li-
ability for most claims. Major City Departments are
assessed for the cost of their own liability claims, in-
creasing claims awareness and management efforts.

Unexpected losses to physical city property, due to
various causes including fire, flood, or vandalism have
been minimal, with one exception, and are funded
through the annual operating or capital budgets.

Reserves and Commercial Insurance

In preparation for a catastrophic event, which could

adversely impact overall City operations, the City has
begun building reserves and strategically purchasing
commercial insurance.

The City purchased its first catastrophic property in-
surance policy in FY99, recognizing the value of over
$3.5 billion in physical assets, including 350 City
buildings and their contents. The coverage finances
any property loss up to a minimum of $400 million, af-

ter a $10 million retention. Already, a water main
break at the McKim Library in August 1998 caused an
estimated $9 million in damages, which has the po-
tential for using the policy coverage. Additionally, for
property loss financing, an interdepartmental team
including the Boston Emergency Management Agency
is working to improve the City’s ability to recover all
monies available through the Federal Emergency
Management Agency in case of a natural disaster.

To assist the City in funding the self-insured retention
for the property policy, and to cover other extraordi-
nary self-insured types of risks, the City continues to
build a “Risk Retention Fund”. With the FY00 budget
request of $1.0 million, the fund will exceed $2 mil-
lion.

Property Tax Collections

The collection of property taxes has been improved by

enhanced tracking systems and more thorough collec-
tion procedures and notifications, resulting in an in-
creased rate of collection.

The City has implemented an aggressive enforcement
program that continues to reduce the number of tax
accounts that are delinquent, and to discourage new
delinquencies. The City achieved a property tax col-
lection rate of 97.6% of the FY98 gross levy as of June
30th, 1998. The City’s enforcement program includes
the adoption of stricter guidelines for handling delin-
quent taxes, utilizing a variety of collection remedies
authorized by state statute and working closely with
the Commonwealth to refine the tax collection sys-
tem. For example, the City, following requisite ap-
proval from the Massachusetts Department of
Revenue, was the first municipality in the Common-
wealth to amend tax bills to include past due
amounts. The City has implemented an automated
tax information hot line that allows taxpayers to call
from 7 a.m. to 10 p.m., seven days a week, for updated
tax balances, duplicate tax bills or information on
other tax related questions. In addition, during FY99,
the City combined customer service for the valuation

and collection aspects of property taxes that are tradi-

tionally administered separately by the City’s Assess-
ing and Treasury departments. These changes,

coupled with letter writing campaigns to first-time de-

linquents, have resulted in a significant reduction in
the number of past due accounts.

Expenditure Controls

In addition to the management systems described

above, the City operates under several statutory finan-

cial control systems. Certain controls established in

the 1982 Funding Loan Act and its 1986 amendments
set limits on flexibility in financial administration.
Under the 1982 Funding Loan Act, for example, until
April 15 of each year, the Mayor is authorized to real-
locate no more than $3 million.

Several financial controls were enacted by state law
and implemented during the 1980’s. An expenditure
allotment system prevents departmental overspend-
ing of personnel appropriations. Additional state law
provisions are directed at the control of School De-
partment spending. These controls, teamed with con-
servative and cautious estimates of annual revenue,
have aided the City in avoiding operating budget defi-
cits every year since fiscal 1985, and have aided the
School Department in avoiding operating budget defi-
cits every year since fiscal 1990.

Reserve Fund

As required by law since 1986, the City has been main-
taining a reserve fund equal to 2 1/2% of the preced-
ing year’s appropriations for all City and County
departments except the School Department. The
fund may be applied to extraordinary and unforeseen
expenditures after June | in any fiscal year with the
approval of the Mayor and the City Council. To date,
this budgetary reserve has not been utilized. As of
June 30, 1998, the reserve fund had a balance of $18.7
million. No additional funds are required for the pro-
posed FY00 budget in order to meet the FY00 statu-
tory obligation.

Accounting System

Financial management is supported through the
Auditing Department’s application of the Local Gov-
ernment Financial System. This computerized finan-
cial management and accounting system is designed
to track standard accounting functions such as reve-
nues, expenditures, accounts payable, accounts re-
ceivable and general ledger. In addition, LGFS
performs the specialized functions of encumbrance
control, fund accounting and grants management, as
well as other accounting and budgeting functions.
The utilization of this system has improved the finan-
cial monitoring and the reporting of funds manage-
ment. On-line access to financial information allows
department managers to evaluate directly the finan-
cial performance of their departments and specific
programs within their departments. However, the sys-
tem has become limited by its 16 year-old mainframe
design. With an eye towards Year 2000 system compli-
ance, the City is in the process of implementing a new
financial and human resources software package.

The new system is expected to be in full operation for
FY0O.

The Auditing Department has developed a fiscal year
closing process that limits and controls departmental
appropriation reserves through encumbrances and
closely monitors the amount of prior year reserves
carried forward, which maximizes the City’s undesig-
nated fund balance. In addition, the process allows
for the year-end closing and accompanying financial
statements to be completed in an efficient and timely
manner. The Auditing Department maintains a docu-
ment tracking system to monitor payment lag times
and a city-wide vendor payment scheduling system.
Both the tracking and scheduling of vendor payments
ensures timely payments to vendors and enhances
cash management. Payments to major utilities such
as Boston Gas and Boston Edison are monitored by a

system that addresses disputes efficiently, thereby en-

suring application of credits and the elimination of
late charges.

Management Letters

Each year, following the completion of the financial
statements, the City’s independent auditors deliver a
management letter containing comments and make
recommendations on internal financial controls. The
current management letter indicated no material
weaknesses in the City’s management. Specific man-
agement improvements have been recommended in
the management letters, and many of the controls
which the City has implemented originated from the
auditors’ recommendations. The auditors have com-
mented favorably in successive management letters
on the City’s progress in addressing the auditors’ sug-
gestions. Through its own efforts and, when required,
through appropriate legislation, the City intends to
continue to modify and improve its internal financial
controls with the advice of its auditors.

Contracting Procedures

The Uniform Procurement Act, Massachusetts Gen-
eral Laws Chapter 30B, enacted by the Common-
wealth in 1990 (the UPA), creates uniform procedures
for the contracting of services and supplies by all mu-
nicipalities in the Commonwealth. The Auditing De-
partment, working with the City’s Law Department,
has developed and implemented internal processes to
conform City contracting procedures with the require-
ments of the UPA and other statutes specifying re-
quired contract procedures.

Auditing and Budgeting Practices

The City prepares its comprehensive financial reports
in accordance with generally accepted accounting
principles (GAAP). However, accounting practices
established by the Commonwealth's Department of
Revenue, the so-called “budgetary basis” method of
accounting, are used in the annual budget and prop-
erty tax certification process. Budgetary basis de-
parts from GAAP in the following ways:

(a) Real estate and personal property taxes are re-
corded as revenue when levied (budgetary), as op-
posed to when susceptible to accrual (GAAP).

(b) Encumbrances and continuing appropriations are
recorded as the equivalent of expenditures (budget-
ary), aS opposed to a reservation of fund balance
(GAAP).

(c) Certain activities and transactions are presented
in separate funds (GAAP), rather than as components
of the general fund (budgetary).

(d) Amounts raised for the prior years’ deficits and
available funds from prior years’ surpluses are re-
corded as revenue items (budgetary), but have no ef-
fect on GAAP revenues.

In addition, there are certain differences in classifica-
tions between revenues, expenditures and transfers.
The following reconciliation summarizes the differ-
ences between budgetary and GAAP basis accounting
principles for the year ended June 30, 1998.

he “Che ah Bete a Nar 3

Adjustments Between Budgetary Basis and
GAAP Basis of Accounting for FY98

(in thousands )

As reported on a budgetary basis

Adjustments:
Revenues to modified accrual basis

Expenditures, encumbrances and accruals, net

Reclassifications:

Parking meter revenue and expenditures to a special revenue fund
Debt service expenditures

State-funded teachers' retirement costs

Trust fund revenue

Public Health Commission appropriation

As reported on a GAAP basis

Revenue

1,446,221

(8,500)
421

(35,275)

(700)

1,429,696

Expenditures

1,438,794

(2,039)

(8,500)
19,472
(35,275)

(66,678)

1,345,774

a nh. ta ta dems eta

Other
Financing
Sources
(Uses), Net

19,051

700
(66,678)

(46,927)

Excess
(Deficiency) of
Revenue and

Other Financing

Sources

7,427

PH SONS,
2,039

36.995

Capital Planning .

Capital Planning

Overview of Capital Planning

Boston’s Five Year $1.4 billion Capital Plan is an in-
vestment program for the City’s future. The underly-
ing framework for the plan emphasizes (1) the
strategic use of infrastructure to promote economic
development, neighborhood revitalization, quality
education, health care, and public safety, (2) compre-
hensive planning to lay the foundation for future
growth, and (38) effective government management to
provide leadership and vision.

The Office of Budget Management (OBM) is responsi-
ble for managing the capital budget of the City. OBM
coordinates the evaluation of capital requests, fore-
casts the timing and financial requirements of new
construction and rehabilitation, monitors capital proj-
ect expenditures, and recommends the allocation of
current and future resources to meet the City’s infra-
structure and facility needs.

Capital Planning Process

Resource availability and capital needs are assessed
annually through a capital planning process that re-
sults in a five-year capital plan and the formulation of
a fiscal year capital budget. To emphasize the bal-
ance between need and resource availability, the
budget document (in Volumes II and III) includes
both capital authorizations and expenditure projec-
tions for each project.

Steps in the Process

The process begins with an open capital improvement
project request period where all departments have an
opportunity to identify their facility, infrastructure
and planning needs in a systematic manner and to
forward their proposals to OBM for funding considera-
tion. The development of department project re-
quests may involve both internal assessments of
current need as well as a review of external constitu-
ent requests.

The departmental requests must be comprehensive
and meet threshold criteria established each year.
Project requests include cost estimates, descriptions
of the proposed scope of work, project justifications
related to the primary criteria (outlined below), and
useful life statements.

The total cost of a proposed project must also con-
sider its long-term affect on the City’s operating
budget. Accordingly, project requests also include in-
formation describing the proposed project’s antici-
pated affect on personnel, utilities, maintenance and
supply costs as well as expected changes in service
demand or delivery of departmental programs. Asa
practical matter, it is assumed that certain types of
projects such as energy conservation/efficiency (i.e.
heating system upgrades, roof and window replace-
ments) provide operating savings, although the exact
dollars are not quantified.

Finally, federal tax law regulations included in the
1986 Federal Tax Reform Act require a review of the
submissions to determine the extent to which private
purposes or benefits exist for each project. This re-
view is necessary for Boston to maintain its tax-
exempt financing status.

All capital improvement projects requesting funding
consideration this year had to meet at least one of the
following threshold criteria:

@ Enhances general government effectiveness

New capital requests that are recommended for fund-
ing are placed into a multi-year spending plan along
with projects funded in prior years. The first year of
the spending plan is considered the City’s capital
budget and expenditures against this plan are closely
monitored.

The capital plan is submitted by the Mayor to the City
Council each year. The Council, in turn, holds public
hearings and approves authorizations for new projects
and for projects requiring additional authorization.
This year’s capital plan identifies 561 new and con-
tinuing projects and proposes $70.4 million in new
project authorization. (See Highlights)

Financing the FY00-FY04 Capital Plan

Financing for the capital plan is derived from the fol-
lowing sources:

General Obligation (G.0.) Bonds

General obligation bonds represent 62% of all project
funding. This year’s plan assumes $490 million of new
general obligation borrowings over the next five years
(FY00 - $120 million, FY01 - $100 million, FY02-04 -
$90 million each year). This proposed G.O. financing
plan does not include debt issuance to support the
Boston Convention and Exhibition Center (BCEC)
project.

Bond Anticipation Notes (BANs)

The City’s share of the Boston Convention and Exhibi-
tion Center (BCEC) project which totals $157.8 mil-
lion will be financed in the near-term by bond
anticipation notes to be issued in FY99 and FY00. The
City expects to retire all outstanding notes with the
proceeds of Convention Center Bonds to be issued
during FY02 or FY03. At the City’s option, the Conven-
tion Center Bonds can be issued either as general ob-
ligation or as special obligation bonds. (See Major
Capital Projects - Boston Convention and Exhibition
Center)

State and Federal Funds

State and federal funds, as sources of capital financ-
ing, are currently estimated at $295 million from state
and $167 million from federal programs. Specific fi-
nancing programs provide key resources for Boston’s
Capital Plan. Examples of these programs include:

School Building Assistance Program: This State De-
partment of Education program is an important reve-

nue source for school renovation and construction.
Under the current program, the City is reimbursed for
90% of the cost of eligible construction projects. The
reimbursement period generally corresponds to the
term of outstanding debt for each school project. Re-
imbursement payments are made to the City’s General
Fund and are included as part of the annual State Aid
package. In FY00 reimbursement payments are fore-
cast at $17.2 million. Reimbursement payments due
between FY01-FY04 are forecast at $76.2 million.
Nearly $95 million in projected school spending in the
next five years is eligible for 90% reimbursement.

Chapter 90 Funds: Administered by the Massachusetts
Highway Department, Chapter 90 funds are allocated
by formula through a State transportation bond
authorization to all cities and towns in the Common-
wealth. Based on current allocations, $11 million in
Chapter 90 funds are anticipated annually.

Surface Transportation Program : A program estab-
lished through the federal government's $167 billion

Transportation Equity Act for the 21st Century (TEA-
21), the Surface Transportation Program funds 80% of

Highlights of the FY00-04
Capital Plan

Education

e Technology Upgrades at Various Schools

e Orchard Park K-8

e Boston Latin School Addition and Renovation

e East Boston, Hyde Park and Dorchester High
Schools Renovations

Public Safety
@ New South End Police Station
e Public Safety Harbor Facility Study
e New Charlestown Police Station
e New Fire Equipment
e Fire Station Repairs

Basic Services

e New Soccer Fields For Dorchester, and Hyde
Park

e New Play Equipment and Ballfield Renovations

e Creation of Waterfront Park

e McKim Library Restoration

e Gardner Street Landfill Phase I Construction
e Dartmouth Street Plaza

Human Services

e Community Centers Administrative Offices
Relocation to Mission Hill.

e Blackstone Community Center Renovations

e Harborside Skate Park

e Nazzaro Community Center Renovations

Chief Operating Office/Chief Financial Office
e Boston Administrative Information Systems
Project (BAISP)
e Year 2000 Computer Systems Solutions
e Fiber Optic Network Analysis

Economic Development
e New Boston Convention Center
© Boston Harbor Walk Improvements
e City Hall Plaza Redesign
e Children’s Wharf Walkway

Public Health Commission

e Marathon House
e Homeless Shelter Renovations
e@ EMS Ambulance Siting Study

Environmental Services

e Open Space Acquisition Fund
e Hazardous Waste Clean-Up

e Beach Restoration

e Traffic Signal Upgrades

the cost of construction for major local road projects.
The capital plan carries 42 projects that can be
funded through TEA-21.

Trust Funds

The City’s Trust Office manages trust funds and be-
quests from private citizens that are dedicated to Bos-
ton’s public spaces. While these trust funds represent
a small percentage, less than 1% of the overall reve-
nue to the capital plan, they play an important role.
Grants from the Edward Ingersoll Browne Trust Fund
have been used for the restoration of neighborhood
parks and public spaces. The George Robert White
Fund is used to support facilities owned by the Fund.

Expenditures

Between FY95 and FY98 capital spending increased
104%. Total capital expenditures are expected to de-
cline in FY00 to approximately $150 million and to
stabilize around $120 million through FY04.

Between FY95 and FY96 capital expenditures in-
creased from $84.7 million to $106.4 million. The in-
crease in spending was driven mainly by an increase
of expenditures for school projects and police related
projects including a new headquarters facility. This
trend continued into FY97 with total capital expendi-
tures of $124.3 million. (Figure 1.)

Millions of Dollars
$200 Sr Te Ss = =. a ae 5

OU itm ec ae Sai ee ee
$160
$140 be
$120
$100
$80
$60
$40 —

$20 ——

‘95 '96 '97 '98 '99 ‘00 '01 ‘02 ‘03 '04
Capital Expenditures
FY95 - FY04

Figure 1

Capital expenditures totaled $173.1 million in FY98.
The key drivers continued to be the new police head-
quarters, high school accreditation and school tech-

nology. In addition, the School Department pur-
chased 259 buses at a cost of approximately $8.6 mil-
lion. The Public Works Department (PWD) increased
its spending on road and sidewalk improvements as
well as bridge improvements. The PWD utilized
Chapter 90 roadway funds at a faster rate than ever
before. The Parks and Recreation Department com-
pleted renovations to the Frog Pond on Boston Com-
mon and continued its program of park
improvements, play equipment upgrades and street
tree plantings.

Capital expenditures are forecast at $130 million in
FY99. The continuing emphasis on school technology,
school renovations and new school construction will
increase the School Department’s share of capital ex-
penditures in FY99 to 40%. The Public Works Depart-
ment, supported by Chapter 90 funds, ranks second.
The next largest capital expenditure is for the Boston
Administrative Information Systems Project (BAISP)
the City’s new financial and human resources infor-
mation system. Core financial functions including the
general ledger, accounts payable and purchasing func-
tions will be operational by July 1, 1999.

Capital expenditures are forecast at $150 million in
FY00. The continuing emphasis on school technology
and the renovation/expansion of several high schools
will increase the School Department’s share of capital
expenditures in FY00 to approximately 45%. The
BAISP project’s implementation of core financial and
human resources functions will continue through the
third quarter. In addition, several community centers
and pools will be renovated, construction will begin
on a new library in Allston and on a new police station
in the South End. Finally, the Parks and Recreation
Department will continue its ongoing program of
renovating parks, replacing play equipment and plant-
ing street trees.

The City continues to aggressively pursue grant funds,
maximize the use of Chapter 90 funds for road and
sidewalk projects, and actively manage its projects to
ensure that spending stays in line with projections
and that priority projects move forward. Together,
these strategies will enable the City to maintain a rea-
sonable level of capital spending and borrowing and
also prudently manage its outstanding debt.

Operating Budget Impacts

The construction of new facilities or the major reno-
vation/change in use of existing facilities are the pri-
mary sources of increased operating costs for the City
due to capital investment.

In FY99, several new or renovated facilities were
placed into service, including three early education
centers and the Boston Arts Academy (September
1998) and a new golf clubhouse at Franklin Park
(second quarter). The golf clubhouse operates under
a management contract that will minimize fee in-
creases for players. The course manager will operate
the facility using revenue generated from greens fees.
The City does not anticipate incurring operating ex-
penses at this facility.

Debt Management Policies and Debt Implica-
tions of the Plan

Effective debt management will ensure that the City
can meet its capital infrastructure and facility needs.
Debt management requires a series of decisions about
the amount, timing, purposes and structure of debt is-
suance. The long-term debt related to capital invest-
ment has two main purposes:

(1) it finances acquisition, construction, repair and
renovation of City-owned buildings, equipment and
other City facilities that are necessary to provide pub-
lic services; and

(2) it finances infrastructure improvements needed
for the City’s continued growth and maintains safe
roadway conditions.

The Treasury Department manages all City borrow-
ings. It has focused in particular on the timing of bor-
rowings, paying special attention to favorable market
conditions. The City adopted a set of debt manage-
ment policies that were implemented by the Treasury
Department. These policies address issues such as
debt affordability and limitations on the level of vari-
able rate debt the City will use. The goal is to rapidly
repay debt, maintain a conservative level of outstand-
ing debt and ensure the City’s continued positive fi-
nancial standing with the bond market.

Key components of the debt management policies en-
sure that:

® at least 40% of the overall debt is repaid within five years
and 70% within ten years;

Refer to the chapter on Financial Management for
further discussion of the city’s financial policies and
management controls.

The City’s debt service forecast assumes a borrowing
of $120 million in FY00, $100 million in FY01 and $90
million for each year from FY02 to FY04. The debt ta-
bles at the end of this chapter detail the City’s out-
standing debt service obligations and demonstrate the
City’s rapid retirement of its debt.

Through FY04 the projected annual debt service re-
quirements are within the City’s operating guideline
of holding gross debt service to 7% of total operating
budget expenses (Figure 2.) The ratio of debt service
to the City’s primary revenue source, the property tax
levy, declined significantly in the early 1990's. This
ratio is projected to increase slightly over the next
five years. (Figure 3.)

95 '96 '97 '98 '99 '00 '01 '02 '03 '04
Gross Debt Service as a Percent

of Total General Fund Expenditures
FY95 - FY04

Figure 2

The City’s current overall debt burden (net direct
debt to assessed property value of $36.05 billion) is
1.41% as of June 30, 1998. The City’s net direct debt
per capita currently stands at $913.21 as of June 30,
1998. While debt issuance and debt outstanding have
increased over the last decade, it has been a modest
increase.

Boston has been conservative about assuming long-
term debt and aggressive about retiring debt expedi-
tiously. Currently, the City plans to retire 44% of its
principal five years out, before the end of fiscal year
2003. (Figure 4). This overall approach to debt issu-
ance has significantly shaped the City’s capital invest-
ment strategy. Upgrades to the City’s bond rating
have also recognized the successful capital invest-
ment strategy. In-October 1998, Moody’s Investors’
Service, Standard and Poor’s and Fitch IBCA, Inc.’s

20%
18%
16% —
14%
12% =,
10%

2% —

'95 "96 ‘97 '98 '99 ‘00 '01 ‘02 ‘03 ‘04

Gross Debt Service as a Percent

of the Net Property Tax Levy
FY95 - FY04

0% —

Figure 3

awarded the City with bond ratings of Aa3, A+ and
AA-, respectively.

Boston has had ten general obligation bond sales over
the past decade and four general obligation refunding
issues. The smallest bond sale was $15 million in
April 1998; the largest was $120 million in October
1998, which achieved significant interest rate savings.

Major Capital Projects

The table on page 121 lists the major projects being
undertaken by the Capital Plan. Descriptions on all
561 projects can be found in Volumes II and III of the
Recommended Budget. The project descriptions in-
clude authorizations and funding sources, projected
expenditures and scope information.

Boston Convention and Exhibition Center

The Convention Center Act authorizes the develop-
ment of the Boston Convention and Exhibition Center
(BCEC) Project on a 60-acre site in South Boston
through the joint efforts of the City, the Common-
wealth, the Boston Redevelopment Authority (BRA)
and the Massachusetts Convention Center Authority
(MCCA). The 1.7 million square-foot facility will in-
clude approximately 600,000 square feet of contiguous
exhibition space, as well as ballrooms, meeting rooms,
banquet and lecture halls and indoor underground
parking. The BRA is authorized and directed by the
Convention Center Act to acquire the site for the
BCEC Project and to carry out all required site prepa-

ration, including demolition and environmental reme-
diation. The completed site will be conveyed to the
MCCA for nominal consideration. The MCCA will be
responsible for the design and construction of the
BCEC Project, and its operation upon completion.

Under the Convention Center Act, all costs of site ac-
quisition and preparation incurred by the BRA for the
BCEC Project will be borne by the City up to an initial
ceiling of $157.8 million. All such costs in excess of
$157.8 million and up to $205 million will be borne by
the Commonwealth. If the costs of site acquisition
and preparation exceed $205 million, the Convention
Center Act provides that the City and the Common-
wealth will share the excess equally up to a maximum
of $50 million (i.e., an additional $25 million each).
The Convention Center Act authorizes the City to is-
sue up to $182.8 million of bonds (and notes in antici-
pation thereof) to finance the BRA’ initial site
acquisition and preparation costs up to $157.8 million,
plus an additional $25 million, if necessary, to finance
the City’s share of those site acquisition and prepara-
tion costs that exceed $205 million. All costs of design
and construction of the BCEC Project will be funded
by the Commonwealth through the issuance of up to
$537.2 million of special obligation bonds of the state
authorized by the Convention Center Act.

In accordance with the requirements of the Conven-
tion Center Act, on March 11, 1998, the City Council
and the Mayor approved the Loan Order authorizing
the issuance of up to $157.8 million in Convention
Center Bonds and notes in anticipation thereof to
fund costs of site acquisition and preparation. Based
on current cost estimates and cash flow projections,
the City expects to expend approximately $127.7 mil-
lion on BCEC Project site acquisition and preparation
costs through the end of calendar year 1999 and an
additional $30.1 million during calendar year 2000.
The City is initially funding its BCEC Project costs
through the issuance of bond anticipation notes. The
City expects to issue additional bond anticipation
notes during FY00 and then to retire all outstanding
notes with the proceeds of Convention Center Bonds
to be issued during FY02.

Convention Center Bonds issued by the City to retire
the bond anticipation notes or fund additional BCEC
Project site expenditures may be issued as general ob-
ligations of the City or may be issued as special obliga-
tion bonds secured by a pledge of all or a portion of
the City’s receipts from (i) the City’s receipts from the
4% local option excise tax on the transfer of rooms in
any hotel, motel or other lodging establishment in the
City, (ii) the City’s $1 share of the Commonwealth's

receipts from a $10 surcharge imposed on each ve-
hicular rental transaction in the City, and (iii) all pro-
ceeds from the issuance and sale of the first 260 taxi
medallion licenses issued by the Commissioner of Po-
lice after enactment of the Convention Center Act.
Only the City’s hotel excise revenue from new hotel
rooms is expected to be necessary to support the debt
service. The last two supporting revenues were estab-
lished as new City revenue sources in the Convention
Center Act.

Work has commenced on site acquisition and prepara-
tion. The BRA provided direction, expertise and serv-
ices with respect to the drafting and approval process
for the environmental impact report for the project
and a hotel marketability study required by the Con-
vention Center Act. Both the environmental impact
report and the marketability study were completed
and accepted in 1998. The BRA has also secured serv-
ices in key areas including appraisal services, tenant
and owner relocation, environmental testing and legal
services. Contract procurement for property manage-
ment, demolition and environmental remediation is
underway. The eminent domain taking of properties
for site acquisition commenced in March 1999.

Preliminary work by the MCCA has commenced on the
design and construction of the BCEC Project. The
MCCA has engaged an owner’s representative and a

designer and is now in the process of engaging a con-
struction manager. The owner’s representative is serv-
ing as the MCCA consultant during the planning,
design and construction stages of the BCEC Project.
The designer will perform full design services, includ-
ing programming, schematic design, design develop-
ment, preparation of construction documents and
construction phase services. The construction man-
ager will be engaged during the design phase and will
provide pre-construction services in coordination with
the owner’s representative and the designer. The con-
struction manager will also be responsible for the con-
struction at a guaranteed maximum price, using trade
contractors selected through publicly advertised,
competitive-bid process. The project is currently ex-
pected to be completed and open for operations in fis-
cal FY04.

RATE of PRINCIPAL RETIREMENT:

(as of June 30, 1998)
Fiscal Years Ending June 30, 1999 - 2018

Fiscal Year Ended June 30,

Percentage of
Total Principal

Amount Amount Retired:

1999 - 2003 288,985,000.00 44.15 %
2004 - 2008 193,505,000.00 2975 64 86
2009 - 2013 126,850,000.00 19.38 %
2014 - 2018 45,180,000.00 6.90 %
654,520,000.00 100.00 %
Figure 4
1B 26.0 Ce aa pl it thas ag nin neg

Major Capital Projects FY2000 - 2004 Plan

Convention Center Enhance Boston's tourism, trade and visitors industries through the acquisition of land 157,800,000
and site preparation for a new convention center containing approximately 600,000
square feet of contiguous exhibition space. Also includes pre-development costs.

Muddy River Stormwater Controls & Dredge Dredge and construct stormwater controls on the Muddy River. State construction 45,000,000
funding anticipated.

New Chelsea Street Bndge Develop design and engineering plans for the construction ofnew Chelsea Street bridge. 43,845,000
Design and construction funding provided by U.S. Coast Guard.

Boston Latin School Upgrade electrical system, expand data winng and technology to all classrooms, 35,740,000
expand the library/media center, and update science labs. Construct an addition
containing a kitchen, a cafeteria, and music and art rooms,

Financial Management Information System Provide planning and analysis as wellas the purchase of new Financial, Human 35,450,000
Resource, and Payroll applications to provide state-of-art solutions to improve City
information access capabilities. The new computer applications are Year 2000
compliant.

Technology Upgrades FY98-01 Upgrades for technology, including upgraded electrical service and distribution; 29,710,719
installation of data wiring.

Orchard Park K-8 F Y00 funds will support programming and design ofa new K-8 school. Future 28,675,000
authorization will fund construction, furnishings and equipment.

Hyde Park High School Construct library/media center, science labs, cafeteria and kitchen; upgrade technology, 28,300,000
HVAC; replace windows, various other upgrades; and an addition containing a new gym.

East Boston High School Construct library media center, science labs, cafeteria and kitchen, and an addition 25,802,800
containing a new gym; upgrade electrical service and technology: renovate ground floor
classrooms; various other upgrades.

Gardner Street Landfill Phase I And II Prepare closure plan for former landfill. Develop a reuse plan balancing environmental 19,700,000
preservation with open space and recreation needs of community. Implement plans to
phase in active and passive recreational uses. DEP financing expected.

Long Island Bridge Rehabilitation Design recoating of bridge along with structural, lighting and guard rail rehabilitation. 17,600,000
State earmarked construction funding anticipated.

Computer Technology F Y98-F Y02 Purchase classroom and admmistrative workstations, file servers, video monitors and 15,969,881
projection systems, workstation furniture; and instructional, administrative and
communications software.

Pave The Way 2000 Roadway resurfacing and sidewalk repair program that will begin during the Summer 15,000,000
1999 resurfacing and repairing neighborhood streets and sidewalks throughout the City.

Huntington Avenue Design reconstruction of roadway. State construction funding anticipated. 12,900,000

Hyde Park Avenue Develop design and engineering plans to reconstruct the roadway, sidewalks and 10,040,000
lighting. Improvements to include landscaping. State construction funds anticipated.
Cambridge, Washington, Tremont Streets Design reconstruction of roadway. State construction funding anticipated. 9,990,000
Hyde Park Branch Library And Addition Construct an addition onto current library building, landscape and improve parking. 9,145,637
Renovate existing building including access improvements.
New Area D-4 Station Design, acquisition and construction funds for a new neighborhood police station that will 8,084,000
replace an existing facility.

Allston Branch Library Programming, siting study, design and, construction of a new neighborhood branch 6,500,000
library.

Vine Street Community Center Renovate entire building including major interior and exterior improvements. The project 6,086,400

also includes providing access for persons with disabilities.

7 i ee
‘ie lated cla

AT 7 = ; . We ir Ue pam ul | ikwkes by
77 sao eet vi hi] Pr bbe.
¥ oi ug otter anantourt ¢ apna unter Aut masaenneaiotente Jorith aqevtdda, tiulaé-

wole mm Woe fan) Mt (ahep eeo-
ba ee Rei me
OT AAOP Lo. 4 Wortmury lo bud jpurrs | mor, OF ae le Tecan ea are

eerie, The ins) Go buppurtiig trenuge wtie aatad. con feallen pl ws eves . Vic print tian ;
debs City euphePWigran PoNy i URI a analy phates nd ot canctacgme co
naan) iets) .< pay ye vale ys Gee uPA
Concer Aas pea fie OFF Fam - Lory, ifr \Agad & Po@i 7 he ri .
ORAM fis canencetion aio seh gan Mauna Pat pet erat saehsahb ag |
on 7 aah (4 ete won is et iis meal ho wi rai F 7
Sah, rue f LAY ) we ig i ah, © ape ih Oil) tre hid eS + ot a io} isis & wars
Mea TRA TORPONe LO LP loalinat aed eypprewal prope shedetihc se laa ah r
MPN SD rc wironmontif ina pei LPN eal eae we ts unis sey anid Aare |p
1 Sitqan o} cai neae ae i pee oot M “ nb gad
AG 200g CM AOLAYE NY bd rented by vendabiens us = a es | wo ded
Meith Conter act. thy Uh Wetrptureati ta) apart ; ny sv iam Aan Ore te of
By nacVetaly ity wl sity we Laapletad vs
aN i : ‘ . OP ect ah Vad 28 age |p ava ett ea gubdie .pyaloes) > omnes i207 4 esbergql epiadasl
ieulds) by ie 74 a 6 in) av oly Vis 6 7
g gate oot
Pes 1 DEY ae | 1 oF i UPPT MAA Berm Sofa -
ET Shae a ot ls aviereeen ieee oidsha? fp A, Gat,» Ws Repth hab graeme ng PONE lee Gai | ‘ A diet breton
f isleeup? tes egeidanet serena 696 Ge erst eux ci k
mei yen is AST a VPage av oTum ’ of) lv
VOR Goce lon 4nd ppg ier OME brats > «dal grat spew Mb Wisutivn honda’ Agh dot shat:
madtewny, The ominet COHEN, LAPT RPRRIRAS AP 8 <emnee Verte ameter pate ole 9) sou it pe
fot Sike aca si } dia ‘Match 107 |
VBL.) eites ‘pe Say i my Oe Oe ee ee Vento? rat nabeot cod |
Tua ate ve ob aed oH Lee wali sas lection hemes [ered Wee & Ym Aians a
ih Retr aru UCUbn a rte PAs by le eM erpdeebahin Qurstes Sqm! a, - P 2
WALD oe eagd ait lee erpretanyy Ved OO pe « Q0w] Mba AN Ht Ya Huck. a yeed = A) gent? Maal trad voodvatle
oma teage Cimmmylo Gone (leew We Sag) (oye kw DP ie rey -
heen ogy e geriecnd I) sean Neragvereavieng bor woize @ 5) nity ; : ;
‘ o -
$ =
0,000 "| vinilidind Rar tawny Dek gre! Jevctevnia dire mph ayirette yaiedre) ager | wreath ad 2ehes bust ymet
wile ghee gahGR ondzoty woes Neveamied 49108 : : -

Set PET yyttoonosT rermgme ha

| Ieee _ ve fom As ‘ns ht ed bed - 5 ,
2a ny al i Bl ER a ct
t Ue NE gg rg 39. re ee
Fi) va) Yoo Hietng Jame 3¢, is Se ctbal ace

O00. Be trnig’ Puna ould iw carb conga, ¥ eis a Bd jr arhg
1) i rind goa Aeneathe bea ersath emiAliog at .

Weal oar Vague

060,008 ¢1

J re tole arent a

WH GPOOT oa Pew aiuseoh ont om

:
a ie 7 A

p007Z- 0002 steeATeOsH A— Suroueu qo argTe¢deyD

ce % od feo ee d | e a)

SOS‘SLE'LIPT 19E'P8r°69 OS6'ErS 00S‘6S0°L9T 6PS‘09PS67 OS7*SOS‘89 OSL‘OFPOL Srl‘'P80°OPL [ROL

000°€S$T°07 000° C061 0 000°00r7 O000°;09E6 0 000°00S 000°060°9 justujiedaq uoneyod sues y,
CHS LTP SET 000°00S1 000°0SI 0 0 006 €0b' 67 OSO'ESOTE 76S OTF ILI juouedag jooyss
LLY P08 77S 000° 0001S 000°S7Z O00 FLL'SII Lor bl€ PSZ 006 18L °F 0 980°60L°96 JuaUedsq SHO A\ SQN
9ELLLE 8h 9ESS6r1 0 0 0 0 0 00T TSE LE UOISSIUIWOD YYBIH WGN
069° 787 PTZ 0 0 0 0 000°688 0 069° €6€ €7 judwpedag juswaseur Ayadold
S77 O80°LE 0 0 0 0 000°S7L°9 000°001'I STTSST 67 juaupedad I90d
8S1060 111 000°001 OSOEEF O0S'STO'Sh SSO PIL’ 000°87HL OOL TET SI 0S6°907 FE jusWpedaq UOBaINaY pur Syed
006° LTSSE 0 0 0 000°000°91 006677 000°000°I 000°866°S I Judo] dAAq POOYJOGYSIIN
000° 0LE'F 0 0 0 0 0 000°STI 000°ShT'b SINAII UONBUIOJU] JUIWAS LUI
081° 7L8°69 PCRGEC Pe 0 000°0967 O000;000L 0 0 SSEOLO'SS yuowpedag Areigry
OOS EEL II 0 0 0 0 0 O00'SIS*E 008178 juaupedag sad1Asag jeuondsadsuj
009° LEL 0 0 0 0 0 0 009°LEL juaupedag suy aydein
DOL IPL IZ 0 0 0 0 0 000°97€ OOL'SIP IZ juowpedaq oul4
000°SS67 0 0 0 0 000°00$ 000°0S7 000°S077Z JudWedog JUSWUOMAUA
00S O€T 6b 0 0 0 0 OSS LEs'SI 000°STIS OS6OLST 87 s19}ua Aun wwo >
000°000°I 0 0 0 0 0 0 000°000°I JOUBUDIU RI] 199} -f [BUI
OO€ rrr ssl 000°0SZ 000°S€ 0 000°7Z0'r 000°00F 000°SIE I O0€ Tr 6LI Ayoy ny Juaudo]aaapay uo}sog
000° OSF'SE$ 000°000°6$ O0$ 0$ 0$ 0$ 000°000°9$ 000°0SF07$ Juawpedog sunpny
[v1 0] 19WIO ySnIy, [elspayq 3} UOHVZUOYU NY UOHSZUOYNyY UOHeZLO0y Ny

p0-10Ad 00AA Bury SIXq

001 | (001 TSIVIA ST UF PAjoy I Saray yy

pue jediound [OL j0%

00 O01 — JESTBOK OT UF Pampoy Saray uy

pue jedioutrg [ey0L 0%

CAT fj eS CS

put jediouLg [eyo] joy,

98d [worl __|TStOK OL Ul palhoy }So10) uy

pur jedioung [EOL jo%

Ul Polljoy } Solo} uy

pue jedioung [eyoy yoy,

S8 0 0 0 0 0 0 0 0 (6 8 O8LLI 8961 “| Jaquiscaq
06S 0 0 0 0 0 0 0 0 Le 06S 000°S1 6961 ‘| snsny
09 0 0 0 0 0 0 0 0 ST 09€ 000° FZ 6961 “| Joquiaseq
098 0 0 0 0 0 0 0 0 09 098 o00'ss 6L61 ‘1 ABW
OL9' II 0 0 0 0 0 0 0 0 b76 OL9' II STS8S 9861 “S| ysnsny
OSO'F 0 0 0 0 0 0 0 0 897 OSO'F O16 8861 “L Ane
StL Y 0 0 0 0 0 0 0 0 ose StL b 000°S9 6861 “1 Yue
SOS LI 0 0 0 0 0 0 0 0 ZOT I SOs lI 000°06 0661 “| Avenues
O€o's 0 0 0 0 0 0 0 0 807 O£0's ssl9l 1661 “SI AR
OTL OE 0 0 0 0 0 0 vcs OLOL 6sr9 OSL 000°08 1661 “S| ARN
067 rl 0 0 0 0 0 0 0 0 LvTT 067 FI SIL‘OL 7661 “S| Aleniqe
$7798 0 0 0 0 BLE $699 0r6 9 OO” se 807 07 Ol Ir SOE 76 €661 “| Areniqoy
Ose er 0 0 96 S76€ LLO'E 089°9I Ips9 OLL ZI 6L6°8 $0001 000°0S £661 “| 19quiajdag
SIOEL 0 0 0 0 p09'| 0r9'sI Orr's $66 OF C18 OSE EC 00658 pool “| Aremigey
(ares 0 0 0 0 6L6 | 069 €1 100°9 STE LI er ll Shr IZ 000°0L F661 “| Jaquiajdag
0069 0 0 76L 009°6 Orl’t 000°91 €10°6 00891 958 El 00S°TZ 000°SL S661 “$1 1990190
008°78 0 0 000°1 000°01 €tC PV OOl'rI 8E8'8 00S PZ SPT Ol 007 rE 000°06 9661 “S| J9QuIaAON
000°06 0 0 09L'I O£O EI slo's SL8SI 1796 Sil tere rl9'9I O86 LE 000°06 8661 “S| Arenues
$$3°79 0 0 vLy OL6'S 6£9°S 0L6 17 LLS‘6 S9TLI SES OS9'LI SSs°79 8661 SI [dy
000°SI 0 0 8Ir Ss9°7 107 | 007 E 6S1°T S9E Pr reine ds O8L'r 000°S1 8661 ‘SI ldy

} S919} U] jediguug }SO1 9) U] jediguug J S919} U jediosuug J SA 9}UT jedisuug } S319} U] jedisuug }SO19) UT] jedisuug qanassi AASST Je ALVG

CTA YBNOIU) 66,4 €ZA YSN 6 LA SLa Ysnoip Fla CLA Ysnorwp 604 SOA YSno1y) POH COA YSN01) 664 LNNOWY

86/0¢/9 &

(spue snoy) ut ¢)
- S[VAIOJUT AVIA DALY Ul PI}BIS -

86/0¢/9 ®
SINGANAVd GOWMdAS LAaAd

NOLSO@ J° ATID

OUTS TANDING DEBT as of JUNE 30, 1998

General Purpose:
Acquisition of Land, Parks and Recreation/
Outdoor Facilities/Cemeteries/LandFill Areas
Departmental Equipment
Remodeling & Extraordinary Repairs
Engineering and Architectural Services

Urban Development:

Economic Development and Industrial Corporation
Urban Redevelopment and Renewal

Parking Facilities:
Parking Facilities/General
arking Facilities/Capital Improvements, Act of 1973

Schools:

Computer Hardware

Computer Software

Capital Improvements, Act of 1966

Capital Improvements, Act of 1973

Capital Improvements, Act of 1991

Capital Improvements, Act of 1996

School Project Loan, Act of 1948

Public Buildings:
New City Hall
Construction of Buildings
Capital Improvements, Act of 1966
Capital Improvements, Act of 1973
Capital Improvements, Act of 1991
Capital Improvements, Act of 1996

Public Works:
Construction of Bridges
Construction of Public Ways
Construction of Sidewalks
Automatic Traffic Control Signals
Street Lighting Installation
Sewerage Works

GRAND TOTAL =

Outstanding @
6/30/98

45,818,507.22
26,898,481.65
212,883,466.21
1,303,190.45

286,903 645.53

10,099,750.28
36,729,919.66

46,829,669.94

1,729,699.60
0.00

1,729,699.60

5,972,612.00
504,000.00
550,000.00
4,519,089.18
20,808,145.20
7,661,354.20

29,535,929.90

69,851,124.48

30,000.00
67,214,412.30
715,420.58
42,739,998.05
32,576,455.11

5,010,988.24

148,287,274.28

19,112,394.00
925141375.62
14,918,675.16
4,104,134.51
10,542,006.88
100,000.00

100,918,586.17

654,520,000.00

Percent of
Total

Outs tanding
Debt

7.00
4.11
AZ
0.20
43.83 %

1.54
5.61
Lil Se

0.26
0.00
0.26 %

0.91
0.08
0.08
0.69
3.18
1.17
4.56
10.67 %

0.00
10.27
0.11
6.53
4.98
0.77
22.66 %

pH #.
Ti
2.28
0.63
1.61
0.02
15.42 %

100.00 |%

JUdWIOS BURY] JOSPNg JO 9NYO/Ueso01g Sujospng [eydeDd oyysod suonsaloig (6)
JUdWIOdeURY JOSpPNg JO IYO ay} 10d suoNdalolg (g)
UsWaseURY JOSpPNg JO IYO yi 410d suoNdalo1g (ZL)
‘sjdiada1 Ala}auIdaD Woy eng (9)
Mp SJO VI ISU ISvIIAV UL PUL ALIN] RU 1B9A CQZ B YM “UOIPW 601 1$JO TOA Ul DdURNSSIIGAap ‘O'H Saunsse sayyNy
YO pJO IVI JSOUIU OSLIOAR UL YM ZOAA SULINP SuLIN}eUL “UOT g°-ZS1¢ SuUl]LIO} QOAA Puke 66A4 BulLinp saouenssi Nyg seulnssy (c)
quowpedsg sunipny oyjiad suonsaloig (+)
JUNWIOS BURY] JOSPNg JO 9dJO/WAsO1g Suospng jeydeD ayysod suondaloig (¢)
UdWIASeURY] JOSpPNg JO IdJO oy} 10d suoNdalo1g (Z)
'%0'9JO SO}VI}SOIU! OFLIOAK PUR SALINJVW ILIA QZ YIM “UOIIILU YGF JO 1B9A YORD DOURNSSI IQAIP ‘O'H saunssy - tOA4-ZOAA
“OHO JO IVI ISUIU IdVIOAV UL PUL SAUNILU ILIA QZ YUM “UOT QO[GJO DouRNSSI JGQop ‘O'H souinssy - [OAA
O%HCT SIO YLIISOUU! OFVIOAV UL PUR SayiNjeUl IIA CQZ YUM “UOIIW OT[FJO BdURNSSI IQapP ‘Q'H sounssy - OOAA
“AWINJVU 1BIA YZ B YUM Spuog ((O'H) UONRSIGO [e1IUIH Ul VOU OZ{F PANsst AUD Oi “8661 “SI 19240190 UO - 66AA
““SMO|[OJ SB QdURNSSI}Qap souinssy (|)
*SALON

pSrZ9L‘ZLI$ OLS*6LL‘LOIS OLS‘E6L‘IOTS LLZ‘S06°76$ 8Z9OTS*E8S bL6°0S6'18$ 6EP C6 PLS :syuamaMboay 9d1arag 3q9q J9N [20

001°861°6 OIL 1076 000° 71€°9 000° T1E°9 L99'TTZES 0 0 Jayuay UoUdAUOD (¢)
O8O'ISS O80 1Ss O80 1¢s O80'1Ss 000°S€Z 0 0 |Iypuery 1908S JoUupIeH (6)
000°00$ 000°00$ 000°00¢ 000°00¢ 000°00$ 000°00$ 000°00¢ aouRNnss[jojisoy (g)
000°000°¢ 000°000°€ 000°000°€ 000°000°€ 000°000°¢ 000°000°€ 000°000°€ uonedinjuy asnuaray (Z)

“SQJON UOT AlBIOdUId] UO }SOAUY SN
PLZ EILS‘66$ O8L‘97S‘F6$ 06r OEP 16$ LOUZPS‘78$ 196°Z9P' HLS pL6OSr8L$ 6£r'£69'0LS s}udmamnbay 3d1A19g§ 349q 39N
000°00I 000°001 000°001 000°001 TPL EO | 9ES°16 0 spuog jo g31eg uo WNIWalg
000°001 000°001 000°001 000°001 000°001 Z19°879 0 }SQ1a}U] pansy
6S0°8t rso'se 8IISE LyIse 681°SE EIT SE 687°SE spun ArajaWaD (9)
0 0 0 0 0 0 0 puny suryurg
001°861°6 OIL 1076 000°71¢°9 000°71E°9 L9O9'TZES 0 0 puny asioxg Aouvdns9Q wooy (¢)
0 0 0 0 CoE IS SLISS $79'°8S SJUDWIAR gd AMIS PUL IAB
LLI676'| LL1°676'1 907 €S0°7 L90°LOI‘Z 118°8S6'l 6£0 OFT TZ COOMee ec UOISSILULUOD YYOH WQnd UoIsog (+f)
$91°699°7 S91°699°7Z 6LI109L°7 €77'900°€ ZOLESt'€ Islssore E89 PEO'r JQUID |BIIPa U0}sog (+p)
Orr 90P 8 I L81°S10°61 L81°S10°61 IST ISL‘6l ple 66l'Ll 166 1S8°T1 0L6°677 LI DOURISISSY UOIONYSUOD [OOYIS (¢)
000°008 000°008 000°008 000°008 000°008 000°00Z IZ1°780'I sjejuay Suryied (Z)

{S9UNOS Payjay Woy aquieay pauiaag anuavAay ssoq
OTT POL'ZEIS ELO'LLE‘SZIS 08 1°909°7ZI1$ S88°ESLPLIS LIS‘Lys‘Pors ZZL‘80L‘86$ 6L9°S9P'68$ 1e01, (1)

OC? 6SL Eh €L0 L88 Cr O81 9EL IP £88 876 6£ ILS Lon LE CTL 807 SE 6L9 SLE IE }SO19}U]
000° S00 68$ 000 06r S8$ 000 028 08$ 000 S78 FL$ 000 OFT L9$ 000°00S £9$ 000 06S LS$ jediout q

199q poapuog - sjudWIaNNbay ad1A1ag 1Gaq SSOID

b0/0€/9 €0/0€/9 C0/0€/9 10/0€/9 00/0£/9 66/0€/9 86/0€/9
pajoaloig pooatoig paoaoid payoatoig pooatoig paoatoig jenjoy

Statutes and Ordinances

Statutes and Ordinances Governing Boston's Operating

and Capital Budgets

This section summarizes key Commonwealth laws
and City ordinances affecting Boston’s operating
budget development and its subsequent expenditure.
The section also covers significant laws and ordi-
nances governing general obligation loan authoriza-
tion. Although the material is not all-inclusive,
please note that it covers the more important laws
guiding the budget process.

In addition to the statutes and ordinances, other
budget-related directives are in various mayoral Ex-
ecutive Orders and in the policies and administrative
guidelines issued by the Office of Budget Manage-
ment.

For understanding Boston’s operating budget, the
most important pieces of legislation are Chapter 190
of the Acts of 1982, commonly referred to as the Tre-
gor legislation, and Chapter 701 of the Acts of 1986,
known as the Tregor Amendments.

Annual Appropriation Process

Section 15 of Chapter 190 of the Acts of 1982, as
amended by Section 2 of Chapter 701 of the Acts of
1986 states that “all appropriations, excepting those
for school purposes, to be met with taxes, revenue or
any source other than loans, shall originate with the
Mayor. The mayor, not later than the second Wednes-
day in April of each year, shall submit to the city
council the annual budget of the current expenses of
the city and county for the forthcoming fiscal year...

“The city council may reduce or reject any item but,
except upon the recommendation of the mayor, shall
not increase any item in, nor the total of, a budget
nor add any item thereto, nor shall it originate a
budget.

“Not later than the second Wednesday in June, the
city council shall take definite action on the annual
budget by adopting, reducing or rejecting it, and in
the event of their failure to do so, the items and the
appropriation orders in the budget as recommended
by the mayor shall be in effect as if formally adopted
by the city council...

“The city council shall take definite action on any
supplementary appropriation order and any order for

a transfer of appropriations by adopting, reducing
or rejecting it within sixty days after it is filed with
the city clerk...

School Department Budget Process

Subsection 6 of Section 32 of Chapter 71 of the
Acts of 1993 states that “in addition to amounts ap-
propriated for long-term debt service, school
lunches, adult education, student transportation,
and tuition revenue, each municipality in the com-
monwealth shall annually appropriate for the sup-
port of public schools in the municipality and in
any region school district to which the municipal-
ity belongs an amount equal to not less than the
sum of the minimum required local contribution,
federal impact aid, and all state school aid and
grants for education but not including equity aid,
for the fiscal year...the commissioner (of the De-
partment of Education) shall estimate and report
such amounts to each municipality and region
school district as early as possible, but no later
than March first for the following fiscal year.”

Section 2 of Chapter 224 of the Acts of 1936, as
amended by Chapter 613 of the Acts of 1987 fur-
ther states that “(a) in acting on appropriations
for educational costs, the city council shall vote on
the total amount of the appropriations requested
by the mayor, but neither the mayor nor the city
council shall allocate appropriations among ac-
counts or place any restriction on such appropria-
tions. The appropriation shall establish the total
support of the public schools, but may not limit the
authority of the school committee to determine ex-
penditures within the total appropriation; pro-
vided, however, that if the city auditor determines
that school department expenditures in any fiscal
year are projected to be in excess of total budgeted
expenditures for that fiscal year, as supported by
appropriation and other available funding, then
the school committee shall not reallocate or trans-
fer funds from any item in the budget for that fis-
cal year to fund any such projected additional
expenditures.

“(b) After the fourth Wednesday of March of any fiscal
year, the school committee shall not initiate or
authorize any new or additional programs or catego-
ries of expenditures requiring additional unbudgeted
expenditures unless such programs or categories have
been incorporated and fully funded in the budget for
the subsequent fiscal year. If such programs or cate-
gories have not been incorporated and fully funded in
the budget for the subsequent fiscal year, they shall
not be initiated or authorized until the school com-
mittee shall have amended its budget submission for
the subsequent fiscal year to reduce or eliminate
other costs, programs or categories in amounts equal
to the projected annualized costs of the new or addi-
tional programs or categories of expenditures.

“(c) The superintendent of schools shall prepare and
submit to the school committee, the city auditor and
the city office of budget management, a monthly
budget update report which shall detail and itemize
year-to-date and projected school department expen-
ditures and budget transfers.”

School Department Financial Affairs

Section 1B of Chapter 231 of the Acts of 1906, as
amended by Chapter 613 of the Acts of 1987 notes
that “the school committee may delegate, in whole or
in part, to the superintendent of schools the authority
to approve for the school department the acceptance
and expenditure of grants or gifts of funds from the
federal government, charitable foundations, private
corporations, individuals, or from the commonwealth,
its counties, municipalities or an agency thereof, the
provisions of section fifty-three A of chapter forty-four
of the General Laws notwithstanding.

“(b) The superintendent of schools shall provide to
the school committee, the city auditor and the office
of budget management of the City of Boston a report,
detailing the source, purpose and balance on hand of
all funds received or expended pursuant to subsection
(a), quarterly.”

Section 2 of Chapter 231 of the Acts of 1906, as
amended by Chapter 613 of the Acts of 1987 states
that “subject to appropriations therefor, the superin-
tendent of schools shall have the exclusive authority
to make on behalf of the school committee contracts,
or amendments to contracts, for the purchase or
rental of equipment, materials, goods or supplies,
leases of property, alterations and repairs of school
property, and for professional or other services, with
the exception of collective bargaining agreements and
contracts for the transportation of students. All school

department contracts or amendments to contracts
shall otherwise conform to the requirements of the
city charter of the city of Boston.

“(b) With respect to all contracts, agreements or
amendments thereto made or entered into by the
school department, the superintendent shall be re-
sponsible for establishing procedures for auditing and
monitoring the compliance of the parties with the
terms and obligations of such contracts, agreements
or amendments thereto."

Charter Schools Legislation

Chapter 46 of the Massachusetts General Laws was
enacted in July, 1997, amending the Education Re-
form Act of 1993 and establishing guidelines for char-
ter schools across the state. Charter Schools are
established for several reasons, including

Chapter 46 allows 50 charter schools. This total in-
cludes 37 commonwealth charter schools and 13 Hor-
ace Mann charter schools. A commonwealth charter
school is a public school that is operated under a
charter granted by the Board of Education. Common-
wealth charter schools operate independently from lo-
cal school committees and are managed by a separate
board of trustees. Horace Mann charter schools are
either public schools or programs that operate under
a charter granted by the Board of Education and ap-
proved by the local school committee and the local
bargaining agent.

Beginning in FY99, the state will absorb 100 percent
of first-year tuition costs for new commonwealth char-
ter students. Each year, thereafter, the state will ab-
sorb incrementally less until the student’s fourth year
when the local school district will assume 100 percent
of the tuition cost.

The trustees for the Horace Mann charter schools
shall annually submit a budget request to the superin-
tendent and school committees for the following year.
In response to its budget request, the Horace Mann

charter school shall not receive less funding than it
would under the district's budgetary allocation rules.

Reserve Fund

Section 7 of Chapter 701 of the Acts of 1986 requires
the creation of an operating budget Reserve Fund to
deal with “extraordinary and unforeseen expendi-
tures.” This section requires that “prior to the date
when the tax rate for a fiscal year is fixed, [the City
must] include in the appropriations for such a fiscal
year as a segregated reserve fund a sum not less than
2 1/2 percent of the preceding year’s appropriations
for city and county departments, excepting the
school department...

“The mayor, with the approval of the city council,
may make direct drafts or transfers against this fund
before the close of the fiscal year, provided that no
such drafts or transfers be made before June first in
any fiscal year.

“Each transfer recommended by the mayor to the
city council shall be accompanied by written docu-
mentation detailing the amount of such transfers
and an explanation for the transfer...”

The section also notes that “the school department
shall establish a segregated reserve fund of not less
than one percent of the current fiscal year’s appro-
priations to the school department within ten days of
final approval of such appropriations. No expendi-
tures may be made from this [school department re-
serve | fund before May first in any fiscal year...”and
“shall require the approval of the mayor and the city
council.”

Budget Allotment Process and Reallocations

Section 18 of Chapter 190 of the Acts of 1982, as
amended by Sections 8 and 9 of Chapter 701 of the
Acts of 1986, requires that “on or before August first
of each year, or within ten days of the annual appro-
priation order for such fiscal year, whichever shall
occur later, the city or county officials in charge of
departments or agencies, including...the school de-
partment, shall submit to the city auditor, with a
copy to the city clerk...an allotment schedule of the
appropriations of all personnel categories included
in said budget, indicating the amounts to be ex-
pended by the department or agency for such pur-
poses during each of the fiscal quarters of said fiscal
year.”

The school department's allotment may not be
greater than 20 percent for the first quarter and 30
percent in each of the remaining three quarters. Al-

lotments for city and county agencies may not ex-
ceed 30 percent for first or second quarters or be
less than 21 percent for the third and fourth quar-
ters.

In addition, “whenever the city auditor determines
that any department or agency, including the
school department, will exhaust or has exhausted
its quarterly allotment and any amounts unex-
pended in previous quarters, he shall give notice in
writing to such effect to the department head, the
mayor and the city clerk, who shall transmit the
same to city council.

“The mayor, within seven days after receiving such
notice, shall determine whether to waive or en-
force such allotment. If the allotment...is waived or
not enforced...the department or agency head shall
reduce the subsequent quarter's allotments appro-
priately and the director of administrative serv-
ices, within seven days, shall state in writing to the
city council and the city clerk what reductions in
each subsequent quarter’s allotment will be taken
or what reallocations or transfers will be made to
support the spending level in each subsequent
quarter’s allotment. If the allotment for such quar-
ter is enforced and not waived, thereafter the de-
partment shall terminate all personnel expenses
for the remainder of such quarter...

“No personal expenses earned or accrued, within
any department, shall be charged to or paid from
such department’s or agency's allotment of a sub-
sequent quarter without approval by the mayor, ex-
cept for subsequently determined retroactive
compensation adjustments.

“Approval of a payroll for payment of wages, or
salaries or other personnel expenses which would
result in an expenditure in excess of the allotment
shall be a violation by the department or agency
head...

“To insure that the overall city and county spend-
ing program remains in balance, the mayor may re-
allocate no more than three million dollars of
non-personnel appropriations other than school
appropriations during a fiscal year to other depart-
mental purposes provided that in no department
from which appropriations have been reallocated
in accordance with this section shall any transfers
be made...from personal services to non-personal
services, except with the approval of a two-thirds
vote of city council, if such transfer would require
the layoff of departmental personnel, who have

been permanently appointed to a position in the de-
partment...

“No reallocation may be made under this section after
April fifteenth in any fiscal year.

“A list of each reallocation made by the mayor shall be
transmitted to the city council and the city clerk by
the city auditor by April thirtieth in any fiscal year. In
each case, the report shall state the accounts from
which the transferred funds were taken and the ac-
counts to which the funds were reallocated, and the
reasons therefor.”

Transfer of Appropriations

Section 23 of Chapter 190 of the Acts of 1982, as
amended by Section 3 of Chapter 701 of the Acts of
1986, states that “after an appropriation of money has
been made...no transfer of any part of the money thus
appropriated, between such department or office and
another department or office, shall be made, except
in accordance with and after the written recommen-
dation of the mayor to the city council, approved by a
vote of two-thirds of all the members of the city coun-
cil, provided that the city auditor, with the approval in
each instance of the mayor, may make transfers, other
than for personal services, from any item to any other
item within the appropriations for a department, divi-
sion of a department or county office.

“After the close of the fiscal year, the city auditor may,

with the approval of the mayor in each instance, apply

any income, taxes, and funds not disposed of and
make transfers from any appropriation to any other
appropriation for the purpose only of closing the ac-
counts of such fiscal year, provided further that the
city auditor within seventy days after the close of the
fiscal year, shall transmit to city council and the city
clerk a report listing what income, taxes, or funds
were applied and what transfers were made and the
reasons therefor.”

Penalty for Overspending Budget

Section 17 of Chapter 190 of the Acts of 1982 (Tregor)
states that “[n]o official of [the] city or county ex-
cept in the case of extreme emergency involving the
health and safety of the people or their property, shall
expend intentionally in any fiscal year any sum in ex-
cess of the appropriations duly made in accordance
with law, nor involve the city in any contract for the
future payment of money in excess of such appropria-
tions...

“Any official who violates the provisions of this section
shall be personally liable to the city for any amounts
expended intentionally in excess of an appropriation
to the extent the city does not recover such amounts
from the person to whom paid...”

Appropriation Restrictions

Section 10 of Chapter 701 of the Acts of 1986 requires
that “the mayor and city council shall appropriate for
the hospitalization and insurance account an amount
not less than the average of the past three years ac-
tual expenditures from those accounts. The city audi-
tor shall certify, in writing to the board of assessors,
that adequate funds are provided in the operating
budget for existing collective bargaining contracts...”

Restrictions on the Disposition Of Surplus
Property

Section 24 of Chapter 190 of the Acts of 1982, as
amended by Section 4 of Chapter 701 of the Acts of
1986, requires that “proceeds from the disposition of
any surplus property shall be deposited in a separate
fund which shall be known as the Surplus Property
Disposition Fund, and shall be used only as follows:
(1) the amount equivalent to the debt incurred, and
interest paid or payable thereon, as a result of the ac-
quisition or improvement from time to time of the
property shall be used only for purposes for which the
city is authorized to incur debt for a period of ten
years or more [and](2) all proceeds in excess of such
amount shall be credited to the capital fund of the
city unless the city council by a majority vote deter-
mines with the approval of the mayor to credit such
proceeds to the general fund of the city.”

Duties Of Supervisor Of Budgets

City of Boston Code Ordinance 5, section 5 states that
“(t]he supervisor of budgets shall, under the direction
of the mayor and in consultation with the director of
administrative services, prepare in segregated form
the annual and all supplementary budgets...and shall
report to the mayor on all subsequent revisions of the
items in any budget...

“The supervisor of budgets shall also prepare...all
transfer orders...

“The supervisor of budgets shall further prepare...the
form of estimate sheets to be used by each officer,

board and department, and each division of a depart-
ment for which the city appropriates money, and the
form of monthly report of such officer, board and de-

partment, and each division thereof, showing expen-
ditures to date of all appropriations by them.

“The supervisor of budgets shall, in addition, have
the powers and perform the duties conferred or im-
posed on the budget commissioner by any statute
other than section 56 of chapter 35 of the General
Laws.”

Convention Center Legislation

Chapter 152 of the Acts of 1997, the convention cen-
ter legislation, was enacted on November 19, 1997.
This legislation authorizes the development and con-
struction of a convention center in Boston as well as
borrowing for other convention center-related proj-
ects in Worcester, Springfield, Pittsfield, Fitchburg,
Greater New Bedford, Holyoke and for conducting
studies of other areas of the state.

Under this legislation and through the joint efforts of
the Boston Redevelopment Authority (BRA) and
Massachusetts Convention Center Authority
(MCCA), the new Boston Convention and Exhibition
Center will be developed and constructed on a 60-
acre site in South Boston. The 1.7 million square foot
facility, which is expected to open in FY2004, will in-
clude 600,000 square feet of contiguous exhibition
space in addition to ballrooms, meeting rooms, ban-
quet and lecture halls, and indoor ground parking.

The enabling law authorizes the Commonwealth to
borrow up to $609.4 million for facility construction
and the City to borrow up to $157.8 million. If neces-
sary, the City is also authorized to borrow up to an
additional $25 million for acquisition and prepara-
tion of the land. The state will fund its share of ex-
penses through several methods, including
convention center financing fees from hotel, meals,
beverage and sales taxes; tourist, sightseeing and en-
tertainment vehicle surcharges; vehicle rental sur-
charges ($10 each, of which $1 will be earmarked for
Boston) and convention center parking surcharges
of $2 per vehicle per day.

Boston’s expenses will be funded through establish-
ing a Room Occupancy Excise Fund encompassing
four major revenues. First, the City collects a four-
percent tax on new hotels that opened on or after
July 1, 1997. Second, the City receives a $1 surcharge
for car and truck rentals as part of the state sur-
charge. Next, the City of Boston will receive 40 per-
cent of the state’s convention center financing fees
collected from Boston hotels through June 30, 2002.
Also, the City will issue 260 additional hackney li-
censes. These taxi medallions, worth approximately

$100,000 each, should raise an estimated $21 mil-
lion. The City held the first hackney medallion
auction on January 15, 1999. On that date, 75 me-
dallions were sold. The remaining 185 medallions
will be sold at future auctions. In addition to these
revenues, Boston is depending on new hotel con-
struction to increase the baseline of fees collected
and the demand for services to generate more
revenue.

With the construction of the new convention cen-
ter, Boston is poised to become a major competitor
for international and national convention and ex-
hibition business, thereby stimulating economic
development and investment. With new attrac-
tions, tourism-related businesses will expand,
thereby encouraging secondary spending for trans-
portation services, recreation, and entertainment
and at hotels, restaurants, and retail stores. The
ultimate economic benefit will be new jobs, new
businesses, and new investment opportunities, re-
sulting in an improved quality of life for Boston
residents.

The Boston Jobs and Living Wage Ordi-
nance

Chapter 3 of the Ordinances of 1998, amending
Chapter 5 of the Ordinances of 1997, was enacted
on July 1, 1998. This ordinance established guide-
lines requiring companies and organizations with
city service contracts of $100,000 or more to pay all
workers a living wage or $8.23 an hour.

The intent of this ordinance is to balance a decent
wage for the working poor with economic develop-
ment in the business community. By raising the
wage level, it is expected that consumer income
will increase, poverty levels will decrease, neigh-
borhood businesses will be invigorated, and the
need for taxpayer-funded social programs will de-
cline. The Living Wage level, higher than the fed-
eral minimum wage, is designed to meet the needs
of a family of four to live at or above the federal
poverty level.

This ordinance applies to for-profit companies
with 25 employees or more and non-profit busi-
nesses with 100 employees or more. Exemptions to
this ordinance include school to work programs,
summer youth programs, seasonal or part-time
work, or where compliance would result in ex-
treme hardship.

Registration of Bicycle Messenger Services
and Licensing of Commercial Messengers

Chapter 302 of the Acts of 1998, approved on August
4, 1998, requires the registration of bicycle messenger
services and licensing of commercial bicycle messen-
gers in Boston. Although the registration fee is nomi-
nal and will not have a substantial impact on the
City’s budget, the main purpose for this law is to pro-
mote and maintain public safety and traffic safety
control. As part of the registration process, each mes-
senger must be instructed in safe bicycling tech-
niques in accordance with section 11B of Chapter 85
of the General Laws.

The Boston Police Commissioner issues numbered
permits (lightweight, reflective patches) that must be

displayed on either the messenger’s back or backpack.

A bicycle messenger is subject to a fine for failing to
carry a commercial bicycle messenger license when
conducting business. In extreme cases for repeat of-
fenders, the commissioner may deny, suspend or re-
voke a license. Messengers may request a hearing to
appeal. The Act exempts persons under 17 years old
who deliver newspapers or circulars.

In addition, each messenger must show proof of insur-

ance coverage for minimum amounts for property
damages, for injuries or death of a person, and for in-
juries to or death of more than one person in any one
accident. Also, Bicycle Messenger Services must pro-
vide workers compensation coverage by law.

Changes in Contracting Procedures

Chapter 262 of the Acts of 1998 establishes that any
department, officer or board of the City of Boston or
Suffolk County must initiate a contract when the
amount involving a request for services or purchase is
$10,000 or more. Previously, the amount requiring a
contract was $2,000. Raising the contract level re-
duces the amount of processed paperwork, stream-
lines the acquisition process, and reduces the time
needed for retaining goods and services.

Civil Service Changes

Chapter 282 of the Acts of 1998 requires that the state
Personnel Administrator certify current provisional
employees and provisional promotees who have
served in civil service positions within the City of Bos-
ton for at least six months prior to January 1, 1998 to
permanent civil service status in those positions. Un-

der this law, approximately 3,100 employees became
permanent civil servants.

Pension Funding Changes

To aid municipalities dealing with property tax reduc-
tion due to Proposition 2 1/2, the state began assum-
ing the cost for local pension COLAs as of 1981.
During the FY97 budget process, the state clearly
stated it would not fund local pension COLAs in sub-
sequent years. The state, however, remains obligated
to pay for local pension COLAs awarded between FY81
and FY97.

The impact of assuming the funding for COLAs
granted after FY98 could have severely impaired the
City’s budget had Boston not changed its funding
schedule to fully fund pension liabilities on a new, ad-
justed schedule. Specifically, without any changes,
the COLA costs would have increased the City’s pen-
sion contribution by $27.9 million in FY99 with an ex-
pectation of 4 1/2 percent growth each year. However,
the City instituted changes in the funding schedule to
offset the increased costs.

The City’s plan has three parts for decreasing the im-
pact of COLA funding. First, through a new actuarial
valuation of the State-Boston Retirement System
(SBRS), which is done at least every three years, the
City realized gains that reduced future funding costs.
This savings is a result of improved investment re-
turns and shifting future pension obligations associ-
ated with the City’s former Department of Health and
Hospitals. This savings is spread through the life of
the funding schedule.

Next, the new valuation indicated a $20.3 million sav-
ings in FY98, a year before Boston will pay its first re-
tirement COLAs. This amount will be applied to offset
future COLA costs for FY99, FY00 and FYO1.

Finally, the City plans to extend unfunded pension li-
ability for retirees three more years, from FY03 to
FY06. This adjustment helps to offset the impact of
COLA increases beyond the immediate and near-term
future budgets.

Boston Public Health Act of 1995

The goal of the Boston Public Health Act of 1995
(Chapter 147) is to establish a new, comprehensive
health care system to meet the challenges of a rapidly
changing health care environment and ensure con-
tinuous delivery of high-quality health care services to
residents. The new health care network of public and
private partnerships unites outreach, health educa-

tion, prevention, outpatient and inpatient services,

home care, emergency care, specialty care, aftercare,

rehabilitation, and long-term care services into an
integrated continuum of care. The overall goals are
promoting health and well being, meeting medical

and public health needs, and educating future physi-

cians and caregivers. The system also addresses cul-
tural and linguistic diversity to meet the health
needs of persons of all races, languages, cultures,
and economic Classes.

Chapter 147 abolished the Department of Health &

Hospitals and established the Boston Public Health
Commission (BPHC) in its place. With City Council

approval, the legislation allowed the City to merge or

consolidate the operations and assets of the hospi-
tals with the Boston University Medical Center Hos-
pital per the following guidelines:

“(1) ensuring the availability of a full range of pri-
mary through tertiary medical programs, in addition
to a commitment to public health, preventive, emer-
gency and long term rehabilitative care programs;

(2) serving both urban and suburban communities in

a culturally and linguistically competent manner
that strives to meet the current and changing health
care needs of people of all races, languages, cultures
and economic classes;

(3) providing a high degree of medical, nursing,
management and technical competency and ac-
countability;

(4) enhancing its role as a major academic medical
center, including support for bio-medical, public
health, medical education and basic science re-
search;

(5) providing managed care services to the commu-
nities served by the new medical center and partici-

pating effectively and competitively in managed care

plans serving the patient population; and

(6) treating its patients, staff and the communities
served with respect and dignity.”

The network links the City’s new Public Health Com-

mission with private hospitals, community health
centers, the new Boston Medical Center, and
community-based organizations and providers.
Through this network, the commission offers a myr-
iad of health services, including primary care, spe-
cialized services such as AIDS treatment and
prevention, communicable disease control, injury
prevention, substance abuse services, infant mortal-
ity prevention, and ambulance services. In addition,

the commission operates the City of Boston’s
homeless shelter.

The budget should set forth the amount by which,
if any, the projected expenditures exceed revenues
and the net cost of public health services. If there
is a net cost of public health services, the budget is
subject to mayoral review and approval. The mayor
may approve or reject and return the budget to the
BPHC. If the budget is accepted, the mayor shall
include the net cost of public services in the City’s
annual budget and may submit supplementary ap-
propriations as needed. The BPHC must adopt its
budget no later than the second Wednesday in
June.

Classification of City Debt

Pursuant to the Bond Procedure Act of 1983, all in-
debtedness of the City, other than certain special
obligation bonds, constitutes general obligation in-
debtedness of the City for which its full faith and
credit are pledged and for the payment of which all
taxable property in the City is subject to ad valo-
rem taxation without limit as to rate or amount.
Pursuant to the 1982 Funding Loan Act and the
Bond Procedure Act of 1983, general obligation
bonds of the City may also be secured by a pledge
of specific City revenues pursuant to covenants or
other arrangements established under a trust or
other security agreement. In addition, special obli-
gation bonds of the City may be issued and be pay-
able from and secured solely by a pledge of specific
revenues derived from a revenue-producing facility
of the City. Indebtedness of the City may also be
classified by the nature of the City’s obligation for
the payment of debt service, depending on
whether such debt is a direct obligation of the City
or is an obligation of another governmental entity
for the payment that the City is indirectly obli-
gated.

Direct Debt-Indirect Debt

Direct debt of the City consists principally of the
City’s outstanding general obligation bonds. The
City’s direct indebtedness does not include the Ci-
ty’s Revenue Refunding Bonds, Boston City Hospi-
tal (FHA Insured Mortgage) Series B (the Series B
Bonds). The Series B Bonds, which refunded the
City’s Revenue Bonds, and Boston City Hospital
(FHA Insured Mortgage), Series A do not consti-
tute general obligations of the City to which its full
faith and credit are pledged. The source of pay-
ments of principal and interest on the Series B

Bonds are payments on a mortgage note for which the
Boston Public Health Commission is mortgagor and
which is payable from revenues of the Commission
and, under certain circumstances, city revenues sub-
ject to annual appropriation by the City, with certain
investment earnings.

Indirect debt of the City consists of a portion of debt
incurred by the Massachusetts Bay Transportation
Authority (MBTA). Although the City is not directly
obligated on bonds or notes issued by the MBTA for
such purposes, state law provides for assessments
against cities and towns within the MBTA’ service
area of the MBTA’s expenses, including debt service
not otherwise paid from revenues or state assistance.
Unpaid assessments may be deducted from state aid
payments to the cities and towns. The City’s assess-
ment currently amounts to approximately 42.7% of the
total annual assessment on all such cities and towns.

Secured Indebtedness

In addition to authorizing the City to secure its in-
debtedness with letters of credit, the Funding Loan
Act of 1982 and the Bond Procedure Act of 1983 em-
power the City to secure any of its indebtedness is-
sued under any general or special law by a pledge of
all or any part of any revenues that the City received
from or on account of the exercise of its powers. Ex-
amples include taxes (such as real property taxes),
fees payable to or for the account of the City, and re-
ceipts, distributions, and reimbursements held or to
be received by the City from the Commonwealth that
are not restricted by law for specific purposes. Cur-
rently, the City does not have any outstanding bonds
secured by such a pledge. The City, however, reserves
the right in the future to issue bonds, notes or other
obligations secured by various revenues of the City or
by letters of credit.

Bond Procedure Act of 1983

In 1983, the City Council passed and the Mayor signed
a home rule petition to the state legislature that en-
acted Chapter 643 of the Acts of 1983 of the Common-
wealth. This act, formally entitled the City of Boston
Bond and Minibond Procedure Act of 1983, is referred
to as the Bond Procedure Act of 1983. Effective Janu-
ary 2, 1984, the legislation modified various proce-
dural restrictions related to the City’s issuance of
indebtedness. Such modifications provide, among
other things, more flexible schedules for repaying
debt principal, the issuance of variable rate bonds,
term bonds and bonds redeemable at the option of the

bondholder, and authorization for the sale of bonds at
a discount. The legislation also provides the City with
the authority to issue bonds in an amount up to $5
million in any one fiscal year and notes in an amount
outstanding at one time of up to five percent of the
prior year’s property tax levy. Each bond and note is
issued in a denomination less than $5,000 (known as
minibonds and mininotes). In addition, the legislation
authorizes the issuance of refunding bonds and grant
anticipation notes, as well as restating the investment
powers of the City and the extent to which city bonds
are legal investments for certain entities.

The Bond Procedure Act of 1983 also reaffirms provi-
sions of state law, indirectly affected by Proposition 2
Y%. This law requires that the City’s annual tax levy
must include the debt and interest charges that are
not otherwise provided for as well as all general obli-
gation indebtedness of the City regardless of the date
of issue.

In addition to modifications to the procedures related
to the City’s general obligation indebtedness, the leg-
islation authorizes the City to finance revenue-
producing facilities with special obligation bonds pay-
able from and secured solely by a pledge of facility
revenues. Under this act, the City may also issue gen-
eral obligation bonds secured by the pledge of specific
city revenues and finance projects that otherwise
could be financed by bonds, lease, lease-purchase or
sale-leaseback agreements. The Bond Procedure Act
of 1983 was amended in August 1991 to provide,
among other things, for increased flexibility in estab-
lishing debt principal amortization schedules.

Authorization of Direct Debt; Debt Limits

All direct debt of the City requires the authorization
of the City Council and approval of the Mayor. If the
Mayor should veto a loan order passed by the City
Council, the charter of the City provides that.the loan
order is void and may not be passed over the Mayor’s
veto. Authorization of bonds under a loan order of the
City Council includes, unless otherwise provided in
the loan order, the authorization to issue temporary
notes in anticipation of such bonds. Under the Bond
Procedure Act of 1983, temporary notes in anticipa-
tion of bonds, including any renewals thereof, must
mature within two years of their issue dates.

The laws of the Commonwealth provide for a general
debt limit for the City (and all other cities of the Com-
monwealth) consisting of a Normal Debt Limit and a
Double Debt Limit. The Normal Debt Limit is 2 1/2
percent of the valuation of taxable property in the

City as last measured by the state Department of
Revenue. The City may authorize debt up to this
amount without state approval. The City may also
authorize debt up to twice this amount (the Double
Debt Limit) with the approval of the state Emer-
gency Finance Board. As of June 30, 1998, the City
had outstanding debt subject to the Normal Debt
Limit of $461.1 million and authorized, but unissued,
debt subject to the Normal Debt Limit of $290.3 mil-
lion. Based on the City’s Normal Debt Limit of ap-
proximately $776.9 million as of such date, the City
could authorize an additional $125.4 million within
its Normal Debt Limit and an additional $702.3 mil-
lion, within its Double Debt Limit which would be
subject to state approval. The equalized valuation as
of January 1, 1997 for use in fiscal 1998 and 1999 is
approximately $31.08 billion.

There are many categories of general obligation debt
which are exempt from the general debt limit (al-
though authorization of such debt is subject to vari-
ous specific debt limits, specific dollar limitations or
state approval). Among others, these exempt catego-
ries include temporary loans in anticipation of cur-
rent and in anticipation of reimbursements or other
governmental aid, emergency loans, loans exempted
by special laws, certain school bonds, and bonds for
housing and urban and industrial development. The
latter bonds are subject to special debt limits rang-
ing from 0.5% to 10 percent of equalized valuation
depending on purpose. On June 30, 1998, the City
had $193.4 million in outstanding debt exempt from
the general debt limit and $407.0 million in author-
ized, but unissued debt exempt from the general
debt limit.

Related Authorities and Agencies

In addition to direct and indirect indebtedness of the
City, the City and certain agencies and commissions
related to the City are authorized by law to issue ob-
ligations that are solely a debt of the agency or com-
mission issuing the obligations or are payable solely
from revenues derived from projects financed by
such debt. Except, as described below, such obliga-
tions are not a debt of the City.

The Boston Public Health Commission is an inde-
pendent corporate and political subdivision of the
Commonwealth created in June 1996 as the succes-
sor to the City’s Department of Health and Hospitals
(DHH). Effective July 1, 1996, all powers and func-
tions of DHH and THH (Trustees of Health & Hospi-
tals) were transferred to the commission. In
addition, the commission assumed all assets and li-

abilities of the City allocable to DHH. At its incep-
tion, the Commission also assumed responsibility
for paying the City an amount equal to current
debt service on all outstanding general obligation
bonds of the City issued for public health and hos-
pital purposes. Such bonds were outstanding on
June 30, 1998 in the aggregate principal amount of
$34.3 million. These bonds are the City’s general
obligations whose outstanding amount is shown on
the City’s debt statement. The commission has also
assumed responsibility for paying the current debt
service on the City’s Revenue Refunding Bonds,
Boston City Hospital (FHA Insured Mortgage) Se-
ries, which were outstanding on June 30, 1998 in
the aggregate principal amount of $158.4 million.
The Series B Bonds are not general obligations of
the City, but are secured by a mortgage on the
former Boston City Hospital campus. Payments of
principal and interest on the mortgage are insured
by the federal government through the Federal
Housing Administration. The commission expects
to meet its mortgage and Series B Bond obligations
through a portion of the rent payable to the com-
mission by Boston Medical Center Corporation for
its lease of the former Boston City Hospital cam-
pus and investment earnings on reserves for the
Series B Bonds. Subject to appropriation by the
City, under certain circumstances such as default
by Boston University Medical Center under the
lease, City revenues may be required to satisfy the
debt service requirements on the Series B Bonds.

The Boston Water and Sewer Commission (BWSC)
is an independent political and corporate subdivi-
sion of the Commonwealth created in July 1977. At
its inception, BWSC assumed responsibility for the
operation of the City’s water and sewer systems
and for paying to the City an amount equal to cur-
rent debt service on all outstanding bonds the City
issued for water and sewer purposes. These bonds
were outstanding on June 30, 1998 in the aggre-
gate principal of $100,000. Such bonds, however,
are general obligations of the City whose outstand-
ing amount is shown on the City’s debt statement.
The City is not obligated, however, on bonds issued
by the commission.

The Economic Development and Industrial Corpo-
ration of Boston (EDIC) is a political and corpo-
rate entity of the Commonwealth consisting of five
members who are also appointed as members of
the Boston Redevelopment Authority (BRA).
EDIC has a variety of powers to assist industrial
development projects in the City. EDIC is not

authorized to issue debentures in excess of $5 million
secured solely by the credit and properties of EDIC
and revenue bonds secured by revenues from the
lease or sale of its projects. The City is also authorized
to appropriate or borrow monies for EDIC develop-
ment projects within certain urban renewal debt limi-
tations.

The BRA is a public political and corporate body that
combines the City’s redevelopment and planning
board authority with certain powers of the state De-
partment of Community Affairs. The BRA board con-
sists of four members appointed by the Mayor, subject
to confirmation by the City Council, and one member
appointed by the state Department of Community Af-
fairs. The BRA provides the planning support for ma-
jor construction and redevelopment activity in the
City. Although the BRA is authorized to issue revenue
bonds and notes that are not city debts, the BRA tradi-
tionally finances its projects through a combination of
federal and state grants, proceeds of general obliga-
tion bonds issued by the City, and revenues from the
lease or sale of land.

Major Debt Statutes and Borrowing Authority

Chapter 44, Section 7 of the Massachusetts General
Laws permits cities and towns in the Commonwealth
to incur debt within the statutory limits of indebted-
ness described previously for various municipal pur-
poses and identifies the specific maturity period for
each purpose. The purposes include, but are not lim-
ited to, the original construction and equipping of mu-
nicipal facilities, repairs and renovations to existing
municipal structures, improvements to parks and
playgrounds, reconstruction and resurfacing of roads,
roadway and street lighting, and equipment acquisi-
tions.

The Capital Improvements Act of 1966, as amended,
permits the City of Boston to issue debt outside the
debt limit for various municipal purposes, including
new construction and renovation of existing facilities.
The legislation provides a specific limit on the total
amount of debt that may be issued under the statute.

The Schoo! Loan Act of 1948 provides for the issuance
of general obligation debt outside the debt limit for
certain school projects approved by the State Board of
Education under the School Building Assistance pro-
gram. Under the program, the state reimburses a per-
centage project costs to the City’s General Fund
annually,

nc e

Boston’s People and Economy

Bb om Se thpoian) 4” 3

Boston s People and Economy

The City of Boston was first incorporated as a town
in 1630, and as a city in 1822. It is one of America’s
oldest cities, with a rich economic and social history.
What began as a homesteading community, and
eventually evolved into a center for social and politi-
cal change, has since become the economic and cul-
tural hub of New England.

As the region’s hub, Boston is home to nearly 560,000
residents, 33 institutions of higher education, some
of the world’s finest inpatient hospitals, and numer-
ous cultural and professional sports organizations.
Boston-based jobs, primarily within the finance,
health care, educational, and services arenas, num-
bered nearly 650,000 in 1997. More than eleven mil-
lion people visited Boston in 1998 to take in its
historic neighborhoods, attend cultural or sporting
events, or conduct business.

The City provides a wide range of programs and serv-
ices to meet the diverse needs of its many residents
and visitors. Under the direction of Mayor Thomas
M. Menino, the City is also aggressively pursuing new
economic opportunities to ensure Boston will
emerge as a global leader in the twenty-first century.

Boston's Role in the Regional Economy

The City of Boston is the 20th largest city in the
United States. The U.S. Bureau of the Census re-

ported Boston’s population as 574,283 in 1990 and es-

timated Boston’s population as 558,394 in 1996.
Boston is the center of the 7" largest Consolidated
Metropolitan Statistical Area (CMSA) in the nation.
As a CMSA, Boston had a total population of 5.6 mil-
lion in 1996 as reported by the U.S. Bureau of the

Census.

In addition to having one of the largest concentra-
tions of population, Boston also ranks among the
highest in concentration of employment and income
in the U.S. In 1997, Boston supplied 649,066 jobs, or
more than one out of every thirteen jobs in New Eng-
land. Boston provides employment opportunities for
many people who live outside of the City. The City
had 9.1% of the state’s population in 1997, but meas-
ured in terms of jobs, Boston’s economy accounted
for 16.5% of the Massachusetts economy.

The attributes that make Boston such a great city in
which to conduct business also make it a great desti-

nation for tourists. According to the Greater Bos-

ton Convention and Visitors Bureau, an estimated

11.5 million people visited Boston in 1998, up from
11.1 million in 1997.

Boston is an attractive destination for conventions,
meetings, and gate shows. Currently Boston has
three sites for small and medium size conventions:
the John B. Hynes Veterans Memorial Convention
Center, the World Trade Center, and the Bayside
Exposition Center. A fourth convention site, which
will be able to accommodate larger conventions, is
currently being planned.

The new Boston Convention and Exhibition Center
will be located on a 60-acre site in South Boston.
The plan calls for development of a 1.7 million
square foot facility containing 600,000 square feet
of contiguous exhibition space, as well as ball-
rooms, meeting rooms, banquet halls, lecture halls,
and indoor underground parking. The convention
center will be funded by a combination of City and
Commonwealth revenue sources. Construction of
this facility along with many new hotel projects in
the City will give a significant boost to the local
economy and help to position Boston as a world
class city of the future.

Boston’s hotel market is currently one of the
strongest in the nation. In 1998, Boston hotels had
an average occupancy of 78.6%, up from 65.4% in
1991. With high occupancy levels, prices for rooms
have risen steadily. In 1998, the average room rate
at Boston hotels was $176.59, up from $109.29 in
1991,

With high occupancy and room rates and the new
Boston Convention and Exhibition Center on the
horizon, Boston is attracting new hotel construc-
tion. Seven new hotels and two hotel expansions
were under construction as of September 1, 1998.
With one existing hotel scheduled for demolition
to coincide with the completion of one of those un-
der construction, there is expected to be a net in-
crease of 1,543 rooms in Boston’s hotel room
supply by the end of 2000 as a result of hotel devel-
opment currently under construction. An addi-
tional hotel project with 196 rooms has been
approved by the BRA while six other hotel projects
containing a total of 1,444 rooms have requested
approval by the BRA.

Boston's Changing Economy

The nature of Boston’s economic base has changed
dramatically over the past four decades. In 1960,
manufacturing and trade jobs accounted for 39% of
the total economy, while financial and service sector
jobs totaled 30%. In 1997, manufacturing and trade
jobs accounted for only 16.6% of the total economy
while financial and service sector jobs totaled 61.8%.
These trends mirror a national movement from an

industrial-based economy to a service-based economy.

The City’s workforce is undergoing a transformation
as well. Of the 550,561 people working in Boston in
1960, 34% held blue-collar jobs and 44% held white-
collar jobs. In 1990, of 622,433 Boston workers, those
holding blue-collar jobs fell to 16%, and those em-
ployed in white-collar occupations rose to 67%. The
majority of these white-collar jobs are within the fi-
nance, health care, education, and other broad-based
service industries. (Table 1.)

The changing needs of a service and information-
based economy have increased the demand for a bet-
ter educated, more highly skilled workforce. In 1990,
76% of the adults in Boston had completed high

school, compared to 45% in 1960. A full 30% of adults
in Boston had completed college in 1990, compared to
only 8% in 1960.

Between 1980 and 1990, there was a 13% increase in
the number of Boston residents in the workforce
while there was only a 2% increase in Boston’s popula-
tion over the same time period. This was due to the
realization by many that two incomes per household
were necessary to maintain a comfortable lifestyle in
the 1980s, while it had taken only one income in the
1970s. Fortunately, the strong economy supported 9%
job growth between 1980 and 1990.

In the 1980s, Boston residents began to commute fur-
ther to their jobs as well. In 1980, 25% of Boston resi-
dents worked outside of Boston. Ten years later, that
number had risen to 32%.

Economic Outlook

As with any economic entity, the City of Boston has
seen good times and bad. During the 1960s, the econ-
omy thrived and unemployment was consistently be-
low 6%. In the 1970s, Boston experienced the same

1960 1970 1980 1990 Recent

Total Population 697,197 641,071 562,994 574,283 558,394 ('96)
% Minority Population <10% 18% 30% 37%

% Family Households 72% 65% 53% 52%

Poverty Rate na na 20.2% 18.7%

% Not High School Graduate 55% 47% 32% 24%

% College Graduate 8% 10% 20% 30%

Unemployment Rate <6% 12.8%('75) 9.1%('82) 8.5%('91) 3.3% (1/99)
Number ofJobs 550,561 376,125 572,078 622,433 649,066 ('97)
% Blue Collar Jobs 34% 28% 22% 16%

% White Collar Jobs 44% 55% 60% 67%

% Manufacturing Jobs 16% 11% 9% 5.2% 4.4% ('97)
% Trade Jobs 23% 22% 16% 13% 12.2% (97)
% Finance Jobs 11% 13% 13% 15% 15.6% ('97)
% Service Jobs 19% 25% 36% 42% 46.3% ('97)
Office Market Vacancy Rate 8.1% 2.4% 1.2% 14.6% 3.3% (4Q'98)
Housing Units 238,500 232,400 241,300 250,900

% Vacant Units 6% 6.4% 9.5% 9%

Number of Units Subsidized 15,000 30,000 40,000 45,000

% of Units Subsidized 6.3% 12.9% 16.6% 17.9%

% Units Owner Occupied 27% 27% 27% 31%

Median House Price na na $71,700 $173,800 $206,400 (2Q'98)
Sources:

Boston Redevelopment Authority, Federal Reserve Bank of Boston,
Massachusetts Division ofEmployment and Training.
Table 1
ijaees ST Tipe ter 8 POs 0meD & Os 04 Im ¥

) pain felt across the country as a national recession remain in Boston after graduation, Boston’s educa-
took hold. tional institutions are a major source of new highly

From 1982 to 1989, a strong economy contributed to skilled professionals for the City’s work force. Bos-
significant increases in real estate values in Boston ton colleges and universities add to the economy in

| and the surrounding area. Housing prices and rental other ways as well. From 1991 through 1997, ap-

, rates increased dramatically. The 1990-1991 reces- proximately $300 million of large construction

Gawreversed his trend projects at educational institutions in Boston were

: : le ae completed.
Since 1992, construction activity in the City has sta-

bilized, and is now strong. In fiscal 1998, building Many of the country’s leading financial services

permit revenues indicated an estimated potential firms are located in Boston, including Fidelity In-

vestments, John Hancock Mutual Life Insurance
Company, Putnam Investments, State Street Bank

construction activity level of $1.7 billion in the City.
Commercial rents have risen steadily as the City’s of-
fice market vacancy rate has decreased significantly, & Trust Company, and BankBoston Corporation.
from a high of 17.7% in 1991 to 3.3% during the The City also has the distinction of being the birth-
place of the mutual fund industry. In 1997, there

were 101,066 people employed in financial serv-

fourth quarter of 1998. Due to the dropping office
vacancy rate and the continued high hotel occu-
pancy levels in Boston, developers are planning sev- ices, insurance, and real estate in the City.

eral office and hotel projects in the City.

ay Transportation

Jobs are plentiful in Boston. Boston’s unemployment

rate peaked during 1991 at 9.3% but has declined to A key to Boston’s economic health is the City’s abil-

3.3% as of January 1999. This compares with the na- ity to transport residents, workers, and visitors ef-

tional rate of 4.3% and the Massachusetts rate of ficiently and safely to their intended destinations.

31%. Boston’s public transportation system reaches into
all of the City’s neighborhoods and is linked to the

The Role of Higher Education, Health Care, commuter rail system, connecting millions of peo-

and Financial Services Industries ple to the central City.

The roadway system provides commuters access to
Boston through surface arteries and three limited
access interstate highways which connect Boston

Higher education, health care, and financial services
play a major role in the Boston economy. An exami-
nation of Boston’s 43 largest private employers shows

28 are involved in these growing sectors. to the national highway system. Interstate 90, the

Massachusetts Turnpike, leads westward from
Many of the nation’s finest research and teaching

downtown Boston to the New York State border.
hospitals are located in Boston, including Massachu-
setts General Hospital, Brigham and Women’s Hospi-
tal, Beth Israel/Deaconess Hospital, Boston Medical
Center, New England Medical Center and Children’s
Hospital. The City is also home to the medical and

dental schools of Harvard University, Tufts University

Interstate 95, the East Coast’s principal north-
south highway, connects Boston to New Hampshire
and Maine to the north and New York City and
Washington D.C. to the south. Interstate 93, an-
other north-south highway, extends from just south

of the City to New Hampshire. Major industrial

fear
and Boston University, as well as numerous parks and high-technology companies line these

community-based health centers. In 1997, there
transportation arteries.

were 95,726 people employed in health services in
the City In 1997, Boston’s Logan International Airport was

the most active airport in New England, the 17th
In addition to the City’s 25 inpatient hospitals, Bos-

ce most active airport in the United States, and the
ton also hosts 33 institutions of higher education.

27th most active airport in the world. In 1998, 26.5

Included among the City’s universities are some of ce, ; ; ‘
8 : million domestic and international passengers

the finest educational institutions in the country, in- were served at Logan airport by 38 domestic and 14

cluding Boston College, Boston University, and international airlines. Logan Airport is also very

Ieee
Northeastern University. important to the economy as a center for process-
These institutions of higher education have a major ing air cargo.

impact on the City’s economy. Boston colleges and The Port of Boston provides New England busi-
universities enrolled approximately 134,774 students

nesses with excellent deep-water port facilities
in the fall of 1996. Because many of these students

By0e tS ech aoe? ie, oS PCO mE | hCah eran. SEA tO Oe) ROL Mery laec

and access to world ports, as well as feeder service to
Halifax, Nova Scotia, and New York. In 1990, the Port

of Boston ranked as the 21st largest American seaport

by total tonnage shipped. The Port of Boston is also a
major cruise ship port, hosting 62 cruise ship calls
and 106,000 passengers in 1998.

Boston's Changing Population

In a thirty year span, Boston’s population declined
from 801,444 in 1950 to 562,994 in 1980. This decline
can largely be attributed to fewer families with chil-
dren and a flight to the suburbs for better schools and
less crime. Since 1980, however, the City’s population
has stabilized. The 1990 U.S. Census recorded the Ci-
ty’s population at 574,283, representing a 2% increase
over the 1980 population, the first increase since the
1940s.

A wide range of ethnic backgrounds and countries of
origin can be found in Boston’s population. Boston’s
rich cultural heritage is also reflected in the diversity
of its neighborhoods. Because the Mayor is aware of
the fact that many of the people who move to Boston
each year come from different cultural backgrounds
and have a first language other than English, he has
created the Office of New Bostonians. The mission of
this office is to strengthen the ability of residents
from diverse cultural and linguistic communities to
play an active role in the economic, civil, social, and
cultural life of the City of Boston.

Quality of Life

Since he first took office, Mayor Menino has made
the quality of life in the neighborhoods a priority. Un-
der his leadership, Boston’s neighborhoods have be-
come more active and at the same time much safer.
Boston’s public safety departments continue to re-
ceive national recognition for the progress they have
made in making Boston a safer place to live and work.

For the Boston Police Department, the facts speak for
themselves. Today, the crime rate in Boston is the
lowest it has been since 1968. One of the corner-
stone’s of the Police Department’s success has been
the Same Cop Same Neighborhood program (SC/SN).
Under SC/SN, the same beat officers are regularly as-
signed to the same neighborhood and will spend no
less than 60% of their beat in that neighborhood.
Keeping Boston a safe City in which to live and work
helps position the City to make strides economically.

BY On Sot

Economic Development

Recent trends indicate that Boston’s economy is grow-
ing steadily. With the election of Thomas M. Menino
as the Mayor of Boston, a new cabinet form of govern-
ment was established to create greater efficiency and
improve the delivery of City services. Within this new
structure, a Chief Economic Development Officer
(CEDO) cabinet position was created. The CEDO is
charged with developing a successful strategy for pro-
moting the economic viability of the City. Two of the
major agencies responsible for economic development
under this cabinet, the Boston Redevelopment
Authority and the Economic Development and Indus-
trial Corporation, have consolidated services to allow
for a more coordinated, comprehensive approach to
planning and development.

Current projects impacting the Boston economy in-
clude the Central Artery/Third Harbor Tunnel project
and the Boston Harbor Treatment Facility project.
Both are funded primarily by the federal government
with the Commonwealth covering the rest of the cost.

The Central Artery/Third Harbor Tunnel project is the
largest public works project in the country, at an esti-
mated cost of $10.84 billion. It is estimated that this
project will employ 15,000 workers during the peak
years of construction. When completed, the new de-
pressed Central Artery and Ted Williams Tunnel are
expected to alleviate traffic congestion throughout
the City, make Logan Airport and East Boston more
accessible, and support new development in South
Boston.

In order to clean up Boston Harbor, the Massachu-
setts Water Resources Authority is constructing one of
the largest wastewater treatment facilities in the na-
tion at a cost of $3.802 billion in 1998 dollars. The
Treatment Facility Project, expected to be completed
in late 1999, is intended to bring wastewater dis-
charges in Boston Harbor into compliance with fed-
eral and state requirements.

There are many economic development projects pro-
ceeding in Boston. These include a plan to develop
the East Boston and South Boston seaport districts,
further enhancements to Boston’s neighborhoods
through the Empowerment Zone and Main Streets ini-
tiatives, and continuing development of retail and
business districts.

Plans are underway to enhance the East Boston and
South Boston seaport districts. Improvements are
planned to parks and neighborhoods to connect resi-

E ¢ foen 08 my

dents to the waterfront areas. In South Boston, a
new federal courthouse has been constructed, with
plans for future hotel, retail, and tourism develop-
ment to attract new workers and visitors to the area.

Partnerships have and will continue to play an im-
portant role in revitalizing Boston’s neighborhoods.
On January 13, 1999, the City of Boston was desig-
nated an Empowerment Zone community by the U.S.
Department of Housing and Urban Development.
The ten-year Empowerment Zone designation brings
with it $130 million in tax-exempt bonding authority
and $100 million in grants to finance sweeping revi-
talization and job creation programs.

Fifteen Boston business districts were also chosen to
participate in the Main Streets Program, a partner-
ship between the City and the National Trust for His-
toric Preservation, which has created new businesses
and jobs, improved the marketability and business
strategy of business districts, and preserved the
character of surrounding residential areas.

Another sign of solid investment in retail in the City
are the projects underway in the neighborhoods to
build new supermarkets and expand others. Other
retail projects under construction include retail and
theater space at Millenium Place on Lower Washing-
ton Street and more retail and theater space at the
Landmark Sears Building in the Fenway.

With a strong economy, educated work force, excel-
lent job growth, a growing tourism industry, an ex-
panding hotel market, a new convention center on
the horizon, a bright retail picture, and safe neigh-
borhoods, Boston is a world class City ready to move
into the next century.

Spey wyorh! pet Ss Pee OMG. oee Ol a Fe EG hoe Mae tiay

¥ f ef aay he : : a
: ; ; ¢ ) ' : ; vA ie re :
| VOL atte Ye Wats (dirty, 16 weld go for ie wie . 7 pe SOTO INDP DIL en Slee i at? oe
° : vo A
ialiter fleet AAitiy etd Kew Vor | ile “ye! : ir yap ” bv idevnvt death voy Pio vabet dnrll 4 ' en
Ad a >t : 7 - a
Gives bah.dd ge ik Biel Ur Wi” raat aid ores nt teh hae | the ay ay elalt a" 7
£ q of ity " i 7} Hei v] vl
y Lote (Mire airy ” | j fia “4g ¢ vin ith y vy! eh 1 ENT oan, hy fey uth ot
wie aie gey Mel Park ind . ; J
fd eis <mleiban an hte Me eat miler ui Pai
i ! ‘ (y “a | lg ’ yy = a

ial pu wh Hines eat | vt wii! pygA yi’ iid rau. ne ‘ 2
see OH AMPEG RY MBER Reds eamens! 0 a>

DOr f Metre) 40 aay} iret wl ee dle Veit es De Tae ea oT iw),
iva | higts . any ih , SINR Hadas Dad BOR su ard! Ona a "
vt MI } on ra), mh Ghileek oe ae ae Vel MPO aid 908mg: ab 9! et : 7
. US Ou s Bailie ded by oie OL? 2) plan 7
vi POLS ye weleattoc 4), aa G1 * (ora :
‘ , f : aUe a uh (Met? (Ua ee Coy bee aa ;
'
i) Wry Mike Comer NP aoAe apres . iss
; arn quPitiarith of) @olegrn sling
We AS rel GHnty As at beoplf nals la
rey ys ay ey 1 “ 7
7” , Mi ed j eye)" (OO) War
tial a Pe YO hy Waar Ve
Vet AA Lin MALY
M rar el why vetoed teed Gor,
Oo pitt ac’ a itd ani
DH) ep MAS | é eine
Jett matibwatt i rg gaa)
‘MURR E HMPA HO pee T curly it once eed?
Mid ADA Pie PLOY Hy AA Uc’
re ul cal Otte pak OT ae on gf
; Stolred enamel estar A dime drriaed ay
wn 4 b Ase iti te) yovien 2 gl ferengtiah ghiot “te
iT Ap. ea CLL ehh foot @ db Dae Papert y jhe
; “ ae le oe ae toere Heres | oti es
Wwe) Dew ol’) asetn Ohrw a el woddol shoe
ni BO Everder Se crue Uy vary Marl 2p eAiaet nin
Pipi veehy ri} POL i i iv , Muithuee as ra 1
ae A aver it OAMMIUELIL®. Ot al
rm hain WA daha T We Or TAVITA) FROM eAy Ws fa®
i ve es Lil ol 80° Dailon hy A dodlars, Thy
$ eek yriet Livny ‘aires ; Hopf Paw hye bad bt be ‘amneing 20
ui hes _ Hive at ry ¥ bo). ve ieendied Ay rid, Presale dm )
oli \, (0 ye v fog cla Seems (erhed tin comin oh b lott
} 1 : wi fa ca Ak? ep, :
wiegt it fi, y TORA, i) tia = " 7 : a 4
rr am any eeM OMS Geer aera Groieela Ot -
id Pullin | iy ox hue Irony - ;

trying Oo Tea’: Vinee ings « plan te daweigg: |, Yes
Be el Wer ern TOR Iie Ei aet Hewtds, qid Pomit Pawan rede yim ‘ 7 :

ee A UNG Gos! QIeShy Se Mh peniTy OS panera to ae
oe mikccity TOE 9°) aah Wie agen wp beapvloghs Lien Ra annum, Ais asa) Mig
bys TRUST a) a a er | ee : na} imiivrs, act enielypals
= ; vst 6 gale (WY 1g ohh avi ant werk bin Oro My
1eh@ pea eM ity 1) etula bl Lies eeonntet>

Budget Organization and Glossary

Budget Organization and Glossary of Terms

Introduction

This Chapter is a guide to the organization of Boston
city government and the FY00 Operating Budget.

The City of Boston, incorporated as a town in 1630
and as a city in 1822, now exists under Chapter 486
of the Acts of 1909 and Chapter 452 of the Acts of
1948 of the Commonwealth which, as amended, con-
stitute the City’s charter. The chief executive officer
of the City is the Mayor. Reelected in November
1997, Mayor Thomas M. Menino is serving a four-year
term ending in January 2001. The Mayor has general
supervision of and control over the City’s boards,
commissions, officers, and departments. The portion
of the City budget covering appropriations for all de-
partments and operations of the City, except the
School Department, and a portion of the operations
of Suffolk County, is prepared under the direction of
the Mayor.

The legislative body of the City is the Boston City
Council, which consists of thirteen members serving
two-year terms, of whom four are elected at-large
and nine are elected from geographic districts. The
City Council may enact ordinances and adopt orders
that the Mayor may either approve or veto. Ordi-
nances and orders, except for orders for the borrow-
ing or appropriation of money, may be enacted by the
City Council over the Mayor’s veto by a two-thirds
vote. The City Council may reject or reduce a budget
submitted to it by the Mayor, but may not increase it.

Organization of City Government: The May-
or's Cabinet

Upon election, Mayor Menino implemented a new
cabinet structure in the executive branch of city gov-
ernment. The cabinet structure delineates the ma-
jor functional responsibilities of city government to
improve the conduct of executive and administrative
business of the City and to eliminate duplication and
waste. The Cabinet presently consists of fourteen
cabinet members: Chief of Staff, Chief Operating Of-
ficer, Chief Financial Officer, Chief Economic Devel-
opment Officer, Chief of Education, Chief of Human
Services, Chief of Basic Services, Chief of Environ-
mental Services, the two Chiefs of Public Safety,
Chief of Public Housing, Chief of Public Health, the
Corporation Counsel (the City’s chief legal officer),

and the Chief of Housing and Neighborhood
Development. Reflecting the importance of
strengthening Boston’s communities and improv-
ing livability for residents, the Mayor has formed a
new cabinet, Housing and Neighborhood Develop-
ment.

The structure of the Mayor's cabinet is illustrated
in the citywide organizational chart below. A de-
scription of the members of the Mayor's cabinet,
the City departments for which they have author-
ity, and their individual responsibilities, follows.

Chief Operating Officer

The COO is the key individual responsible for the
daily administration of the entire city government
and directly oversees Management Information
Systems, Human Resources (including Workers’
Compensation program), Health Insurance, Work-
ers’ Compensation Fund, Unemployment Compen-
sation, Graphic Arts, and Labor Relations. The
COO reports directly to the Mayor and is responsi-
ble for ensuring satisfactory performance of city
managers.

Chief Financial Officer

The Chief Financial Officer (CFO), who also serves
as the Collector-Treasurer, oversees all city finan-
cial matters, including the functions of the Treas-
ury, Assessing, Auditing, and Purchasing
departments, the Office of Budget Management
(OBM), Pensions & Annuities, Medicare Payments,
and the Taxpayer Referral and Assistance Center
(TRAC). The Retirement Board, an independent
board under Chapter 306 of the Acts of 1996, now
has its expenses funded through investment earn-
ings, but remains part of the Finance Cabinet. The
City’s Collector-Treasurer is responsible for super-
vision of the City’s Treasury Department, revenue
collections due the City of Boston and Suffolk
County, management of city borrowings, and city
payments, including amounts due on borrowings by
the City in the form of either temporary or perma-
nent debt.

‘9661 9UNF UI pajeasd Aone juapuadapu! Le SI UOIssiWWOD Yea} II\GNg UO}sOg ay (p)

UOIss|WWO) rr) “SION 91/GNqg Ul AjjeloueUIY "JaUIGed Siu) UIyZIM AjjeoeWWeIBOIg (g)

S,UaWon, wes6olg Buljaho0y ‘UOEAIIAY Q Seg ul Ajjeiueuly auiged siyj ym AjjeoewWesBOIg (Z)

"yueds Jaulged sey ({)

SOIINAS S,ueIE}8/ Ansibay JaBpng Uj ION xx
(Z) Guiuuelg yapng Bunesadg uj jon,

aoeds uadg

§ Aouabsaw3 SOM 9119Nd noj

(Z) uonezyeyAey Q S]usAq jeloads
uoIssiWWwO) Ajapjz yleg peayswig juswabeuey
Ayedoig

Ainsealy

43}U39
aduelsissy pue
jeuajay saAedxey

asiidiajuz ssauisng
eyy jeanying eeaupianl Saue UalWonA AjOUI)
3910 Adljog gor
J9}U89 eounosay Sdiysiauped jeuonsadsuy s]uapisay uojso
Buisnoy jequay Ajunwwoy : $u0i399/3
WUOJIAU

Bulseyoing

,Uonelodiog
aoueuajuleW |Bl4}SNpuy
»,UOISSILUWOD JaMaS a9}4 |esjUag juawdojanag

3B 48} uo}sog ou0d3 /Ajoyny
juawidojanapay
uojsog

siajua)

juswabeue; yaipng
Aunwwo4 uojsog

juawdojanag
pooyoqubleyy S1yBly |IAIg

aatlod Bunipny

Aieigi] a1jqnd uojsog

sjooyos
d1qng uojsog

sassy

juswdojeseq
poousoquBbiay SadiMas juawidojanag

»g Bulsnoy Sdd|Mag UBLN} |P}UawUOIAUA sadiMas dIseg 1mW0u023 (p) UolssiMWO)

ueay oygng Mayes auand

uojeonpy

saounosay uewny
SUOE}aY 10Ge7
49910 Bunesedg jalyy ayy jo a2119

yuays Ajunog yjoyng suy aiydel9
ate SOIIM9S UONEWOJU) Q JUaWabeueW
spaag jo AnsiBoy

(s0usaA0g Ag pajuiodde)
pieog Buisuaaly

(Jousaa05 Ag peyuiodde)
uolss|wwog eaueul4 OSIAPY 4jN0A

UONBWOJU] Gng Jo ariLig
(uonisod pajaaja) SUB/U0}SOG May $0 BIO
ounog AY9 saoias pooyoqubiay
{9uno9 Aylg Aq peuiodde) suonejay jeyuawiuiaAobse,u|

alg Ag 9 0} Z UO}sOg
Sjuawjedag jesoAew-uoN

(L) |@sunoy UoHesods05

(L) eIS 40 e149
JOABW 84} 40 BIO

NOLSO8 40 SN3ZILID

LNAWNY3A09 ALID 40 NOILVZINV9YO

Chief Economic Development Officer

The Chief Economic Development Officer is account-

able for the planning, development, and marketing
functions of the City. The Director of the Boston Re-
development Authority (BRA) serves as the Cabinet
Chief. The Economic Development Cabinet is com-
posed of the Boston Redevelopment Authority/Eco-
nomic Development and Industrial Corporation
(BRA/EDIC), the Office of Minority and Women
Business Enterprises, the Boston Residents Jobs Pol-
icy Office, and the Office of Special Events and Tour-
ism.

Chief of Education

The Superintendent of the Boston Public Schools
serves on the Mayor's cabinet. Among the Cabinet

responsibilities of the Superintendent is the develop-
ment of a plan for schools and other city and non-city
agencies to develop cooperative programs guarantee-

ing the best possible educational resources for Bos-
ton’s children. The Superintendent is appointed by
the Boston School Committee and serves as the
Chief Executive Officer of the Boston Public Schools.

Chief of Human Services

The Human Services Cabinet is responsible for pro-

viding social services for Boston’s citizens. This cabi-

net includes the Office of Cultural Affairs, Boston
Community Centers, the Elderly Commission, the
Emergency Shelter Commission, the Women’s Com-
mission, the Veteran’s Services Department, the Of-
fice of Community Partnerships, and the Office of
Civil Rights, which is comprised of the Fair Housing
Commission, the Commission for Persons with Dis-
abilities, and the Human Rights Commission. The
Office of Community Partnerships, headed by the
Chief of the Human Services Cabinet, is responsible
for the community-based anti-drug and health im-
provement programs, in addition to running the Of-
fice of Children and Family Services.

Chief of Basic Services

Boston’s infrastructure and direct-service activities
are managed by the Basic Services Cabinet. The Ba-
sic Services Cabinet is composed of the Public Works
Department, the Parks and Recreation Department,
the Property Management Department, the Central
Fleet Maintenance unit, the Election Department,
Consumer Affairs and Licensing, the Registry Divi-
sion, the Boston Public Library, and the Youth Fund.
One of the major goals for this Cabinet is investigat-

ing opportunities for applying technological inno-
vations to reduce costs and/or improve the delivery
of basic services.

Chief of Environmental Services

The Environmental Services Cabinet is made up of
the Environment Department, the Inspectional
Services Department, the Boston Water and Sewer
Commission, and the Transportation Department.
Other programs in the Cabinet include the Recy-
cling Program of the Public Works Department, the
Open Space Planning and Olmsted System Revi-
talization programs of the Parks and Recreation
Department, and the Grassroots Program of the
Department of Neighborhood Development. The
Chief of Environmental Services oversees the Ci-
ty’s relationships with the Central Artery/Third
Harbor Tunnel project, the federal Environmental
Protection Agency, the state Executive Office of
Environmental Affairs, the Metropolitan Area Plan-
ning Commission, and the Massachusetts Bay
Transportation Authority (MBTA).

Chiefs of Public Safety

The Public Safety Cabinet includes the Boston Po-
lice Department and Boston Fire Department. The
Police Commissioner and Fire Commissioner both
serve on the Mayor’s cabinet. Together, they re-
view opportunities for consolidated and shared re-
sources to provide more efficient public safety
services to Boston’s communities.

Executive Director of the Boston Public
Health Commission

The executive director of the Boston Public Health
Commission (BPHC) oversees public health deliv-
ery in the City by hospitals, health centers and
community organizations, as well as providing the
City’s emergency medical services.

Administrator of the Boston Housing
Authority

The Administrator of the Boston Housing Authority
(BHA) serves on the Mayor’s cabinet as the Chief
of Public Housing. The BHA is an independent
authority overseeing public housing developments
and senior housing locations throughout the City.

Chief of Housing and Neighborhood Develop-
ment

The newly established Housing and Neighborhood De-
velopment Cabinet is composed of two departments,
the Department of Neighborhood Development and
the Rental Housing Resource Center. These depart-
ments will work together to build strong neighbor-
hoods, develop and preserve local businesses, and
improve housing stock. In addition, these depart-
ments will assist persons seeking housing, provide
shelter and support services, and assist tenants with
problem resolution and mediation with landlords.

Corporation Counsel

The Corporation Counsel has supervisory authority
over all City attorneys and legal affairs and represents
the City of Boston and Suffolk County in litigation.
The Law Department provides an array of legal serv-
ices, including formal and informal opinions and ad-
vice to the Mayor, the City Council, the Boston School
Committee, and other officials in matters relating to
their official duties. The department also represents
the same parties in litigation, reviews all city and
county contracts, pursues claims on behalf of the City
through affirmative litigation, and initiates foreclo-
sure proceedings on tax delinquent property.

Mayor's Chief of Staff

The Mayor's Chief of Staff oversees the day-to-day op-
erations of the Mayor’s Office, and responds to re-
quests and critical issues efficiently and effectively.

In addition, the Chief of Staff keeps an open, direct
line of communication between the Mayor and Bos-
ton’s communities in pursuing resident concerns. The
Mayor’s Office includes the Office of the Mayor, Neigh-
borhood Services, Public Information, Intergovern-
mental Relations, the Office of New Bostonians, and
the Boston 2:00 to 6:00 Office.

An All-Funds Budget

FY(0 is the second year that the City of Boston is pre-
senting a fully integrated budget, including capital,
operating, and external funds. Previous to FY99, the
City presented separate capital and operating budg-
ets. The capital and operating budgets are now incor-
porated to show the full level of funds available to
departments to fulfill their missions.

The operating budget maintains the day-to-day opera-
tions for departments to provide goods and services
whereas the capital budget reflects long-term needs

and planning for infrastructure development and re-
pairs. The capital budget funds new construction or
renovations to existing city-owned facilities (for ex-
ample, police and fire stations and schools), infra-
structure improvements (for example, roads,
sidewalks, and lights), and major equipment pur-
chases such as fire-fighting apparatus. The external
funds budget describes the projects and programs
that the departments will be undertaking in the next
fiscal year, which are financed with funding received
from the state, federal or other non-general fund
sources.

Organization of the Budget

The City of Boston’s Program Budget provides a
wealth of information related to City services and
their associated costs. The Operating and Capital
Budgets present recommended resource allocations
in terms of personnel, facilities, goods, and services.
The budget document also describes the kinds of serv-
ices provided by city and county departments as well
as the levels of services that will be achieved in FY00.

The Operating and Capital Budget Document:
Organization of the Volumes

Volume I provides a citywide review of information on
the FY00 budget and on the context in which it is pre-
pared. Sections include:

® Executive Summary,

@ Summary Budget FY00-FY01,

® City Council Orders,

@ Revenue Estimates and Analysis,

® Innovations in Education: Moving Forward,
@ FY00 Budget and Performance Goals,
® Financial Management,

® Statutes and Ordinances,

® Boston's People and Economy, and

In Volume II, cabinet and departmental budgets are
presented, with the departmental budgets organized
by cabinet. The cabinet presentation includes cabinet
mission and initiatives, followed by a table displaying
total operating, external and capital budgets begin-
ning with FY97 actual results through the proposed
FY00 budgets.

The Departmental Operating Budgets

Activities and services of the City are grouped into
programs for budgeting and management purposes.
The operating budget for each department is pre-
sented on a program-by-program basis.

A “program” is defined as:

An organized group of activities, and the resources to
carry them out, that is directed toward attaining one
or more related objectives.

For the purposes of program budgeting and program
evaluation, a program can consist of direct services
to the public and neighborhoods of the City (police
patrol or voter registration), or traditional city staff
functions (administrative services or engineering
and design).

Some city activities may not be defined as separate
programs even though they may be self-contained
operations. For example, a fire station is not a sepa-
rate program although it is a cost center, for ac-
counting purposes, within the Fire Department’s Fire
Suppression Program.

While these program budgets serve as the basic
building blocks of the budget, there are three addi-
tional organizational levels above the program level
in the budget. NThe basic budget presentation is
modified slightly depending on the structure of a de-
partment. The three levels are:

@ The Cabinet Level, which includes functionally related
departments.

Description of Organization and Definition of
Categories

This section outlines the structure of information re-
ported within each department and program in the
budget. It also defines what is included in the mis-
sion statements, services, performance objectives,
service indicators, capital expenses, and external
funds for FY00.

Department/Division Level

Mission statement: The mission statement is a fun-
damental statement of purpose.

Performance Objectives: These objectives reflect
stated goals for which the division or department
will be held accountable in FY00 and measured on a
monthly basis.

Description: This text furnishes a general overview
of the department and its responsibilities and lists
examples of major services provided.

agen et 6G t Ban tzatkae

Authorizing Statutes: Statutes and ordinances that
create departments as well as endow them with
powers.

Operating Budget: The operating budget presenta-
tion includes a table displaying total operating and
external budgets by program beginning with FY97
actual expenses through the FY00 proposed
budget.

Program Level

Description: This section furnishes a general over-
view of the program and its responsibilities and
lists examples of major services provided. Added
context is often displayed on the demand for serv-
ices or to illustrate the scope of the department's
responsibilities in more detail.

Program Performance Objectives: Each program
identifies the FY00 objectives by which the depart-

ment will be measured.

Program Outcomes: The outcomes illustrate the
intended achievement levels for program objec-
tives in quantifiable terms.

Selected Service Indicators: The selected service
indicators provide brief comparisons of personnel,
funding, and measures of how well the program
has performed for FY97 and FY98. It also includes
FY99 and FY00 projected service levels, budgeted
staff, and funding levels. Service levels may meas-
ure workload, service quality, inputs, outputs, effi-
ciency, or productivity.

In cases where the service level depends on an ex-
ternal factor (for example, the number of tax
abatements or building permits applied for), the
promised service level reflects the workload that
the program is equipped to handle efficiently and
effectively.

Programs report levels of service outputs and
promised outcome achievements on a monthly ba-
sis. This progress is summarized publicly in an an-
nual report.

Financial Data

The financial data identify the major groups and
object codes of expenditures (for example, Per-
sonal Services/Overtime, Supplies and Materi-
als/Office Supplies), the historical expenditures,
and the proposed appropriations in these groups
and objects.

Two financial sheets are provided on the FY00 Operat-
ing Budget: Department History by Object Code and
Department Personnel data.

Department History by Object Code:

The objects of expenditure are listed within six ex-
penditure groups. Dollar amounts are shown for:

@ FY97 actual expenditure,

@ FY98 actual expenditure,

Department Personnel Data

The personnel data show funding for permanent posi-
tions, including existing and proposed positions. All
permanent positions are listed by salary grade within
the department or division. The total salary request is
listed for these positions.

For each position shown, the following information is
provided:

Title: The civil service/personnel system job title of
the position.

Grade: The code for the salary grade of the position.

Position and Salary Requirement: These columns are
used to show the full-time equivalent personnel posi-
tions that a department may fill based on available
funds and the total funding provided for that title for
the fiscal year.

Total Dollars: The total dollars for the permanent per-
sonnel, shown at the bottom right of the personnel
sheet, reflects the amount of funding required to sup-
port personnel prior to adjustments. As applicable,
this figure is then adjusted by differential payments,
other payments, chargebacks, and salary savings.

Differential Payments: These payments are for em-
ployees who are either in intermittent job titles or
who are entitled to extra additional payments based
on shift (for example, night shifts). This figure is
added to the salary requirements.

Other: These figures cover other payments such as

sick leave and vacation buyback, longevity pay, and
other similar distributions.

Chargebacks: These figures are payroll costs to be
charged to another fund or appropriation.

Salary Savings: This figure reflects savings due to em-
ployee turnover. The amount is estimated based on

dog @ 8 | 0 5

historical experience and subtracted from the total
salary requirements.

External Funds

The financial data identify the major groups and ob-
ject codes of external funds expenditures (for exam-
ple, Personal Services/Overtime, Supplies and
Materials/Office Supplies), the historical expendi-
tures, and the proposed appropriations in these
groups and objects. The personnel data show perma-
nent positions, including existing and proposed posi-
tions funded with external funds. All permanent
positions are listed by salary grade within the depart-
ment or division. The total salary request is listed for
these positions. Program services and projects fi-
nanced by external funds are also listed by depart-
ment. Each profile includes a description of the
program or project, the source of funding, and the
geographic area or citizens benefiting from the pro-
gram or project.

Capital Budget

The capital section provides an overview of projects
and major initiatives for departments charged with
managing facilities and major equipment assets. The
dollar amounts are shown for:

@ FY97 actual capital expenditures,

@ FY98 actual capital expenditures,

The next section reviews departmental capital project
profiles, including descriptions of each project scope,
the department managing the project, and the status
and location of each project. A table summarizes the
total capital dollars authorized for project expendi-
ture for not only FY00, but also for future years, as
well as whether the source is city authorization or
other funding such as federal and state infrastructure
grants or trust funds. A listing of actual and planned
capital expenditures in comparison to authorized dol-
lars is beneath this table.

Glossary of Terms

Account: A classification of appropriation by object of
expenditure.

Account Number: The number by which the Auditor
categorizes an appropriation. For budget purposes,
also known as appropriation code.

0 S$ 8 @

Accrual Basis: The basis of accounting under which
transactions are recognized when they occur, regard-
less of the timing of related cash flows.

Allotment: The amount that can be expended quar-
terly for personnel as submitted to the City Auditor
at the beginning of each fiscal year.

Appropriation: The legal authorization to expend
funds during a specific period, usually one fiscal
year. In Boston, the City Council is the appropriating
authority.

Authorization: The legal consent to expend funds.

Base Budget: A budget that describes the funding re-
quired for maintaining current levels of service or
activity.

Bond: An interest-bearing promise to pay, with a spe-
cific maturity.

Bonds Authorized and Unissued: Bonds that a gov-
ernment can issue and sell without needing further
authorization.

Budget: A formal estimate of expenditures and reve-
nues for a defined period, usually for one year.

Budget Amendment: A change from originally budg-
eted quotas; the forms filed by departments with the
Human Resources Department and the Office of
Budget Management to justify these changes.

Capital Budget: A plan for capital expenditures for
projects to be included during the first year of the
capital program. Funds are subject to appropriation.

Capital Plan: A multi-year plan of proposed outlays
for acquiring long-term assets and the means for fi-
nancing those acquisitions. Usually, financing is by
long-term debt.

Capital Improvement: An expenditure that adds to
the useful life of the City’s fixed assets.

Capital Improvement Program: A multi-year plan for
capital expenditures to be incurred each year over a
fixed period of years to meet capital needs.

Cash basis: A basis of accounting under which trans-
actions are recognized only when cash changes
hands.

Chapter 90 Funds: A state-funded program for pay-
ments to cities and towns for 100 percent of the costs
of construction, reconstruction, and improvements
to public ways.

Chargeback: A method of assessing departments for
costs incurred by them for which they are not billed
directly. Charges for telephone, postage, and print-
ing are examples.

Cherry Sheet: A cherry-colored form showing all
Commonwealth and county charges, distributions
and reimbursements to a city or town as certified
by the state Director of the Bureau of Accounts.

Collective Bargaining: The process of negotiations
between the City administration and bargaining
units (unions) regarding the salary and fringe
benefits of city employees.

Commission: An appointed policy setting body.

Community Development Block Grant (CDBG): A
federal entitlement program that provides commu-
nity development funds based on a formula.

Computer-Aided-Dispatch (CAD) System: A net-

work of computers that facilitates the dispatching
of emergency Police, Fire, or Emergency Medical
Service personnel.

Credit Balance: See departmental deficit.

Credit Rating: A formal evaluation of credit history
and capability of repaying obligations. The bond
ratings assigned by Moody’s Investors Service and
Standard & Poor’s Corporation are forms of credit
rating.

Credit Transfer: The transfer of appropriations
from one object code to another within a depart-
ment; the form used to effect such a change.

Debit Transfer: Moving actual expenditures from
one object code to another within or between de-
partments; the form used for such moves.

Debt Limit: The maximum amount of debt that a
governmental unit may incur under constitutional,
statutory, or charter requirements. The limitation
is usually a percentage of assessed valuation and
may be fixed upon either gross or net debt.

Debt Outstanding: The general obligation bonds
that have been sold to cover the costs of the City’s
capital outlay expenditures from bond funds.

Debt Service: The annual amount of money neces-
sary to pay the interest and principal on outstand-
ing debt.

Department: A major service-providing entity of
city government.

Departmental Deficit: A condition that exists when
departmental expenditures exceed departmental
appropriations; also refers to the over-expended
amount and credit balance.

Departmental Income: Income generated by a spe-
cific city department, usually as a result of user
revenues applied for services rendered. Parking

meter charges, building permit fees, and traffic fines
are examples of departmental income.

Division: A budgeted sub-unit of a department.

Encumbrance: Funds set aside from an appropriation
to pay a known future liability.

Excise: A tax applying to a specific industry or good.

The jet fuel tax and the hotel/motel occupancy tax are
examples of excises.

Expenditure: An actual payment for goods or services
received.

External Fund: Money that is not generated from city
sources, but is received by an agency, examples are
grants or trusts.

Fiscal Year: The twelve-month financial period used
by the City, which begins July 1 and ends June 30 of
the following calendar year. The City’s fiscal year is
numbered according to the year in which it ends.

Fixed Debt: Long-term obligations other than bonds,
such as judgments, mortgages, and long-term serial
notes or certificates of indebtedness.

Full Faith and Credit: A pledge of the general taxing
powers for the payment of governmental obligations.
Bonds carrying such pledges are usually referred to as
general obligation or full faith and credit bonds.

Full-time Equivalent Position: A concept used to
group together part-time positions into full-time
units.

Fund: An independent fiscal and accounting entity
with a self-balancing set of accounts recording cash
and/or other resources with all related liabilities, obli-
gations, reserves, and equities that are segregated for
specific activities or objectives. Among the fund types
used by the City are General, Special, Trust, and Capi-
tal.

GAAP: Generally Accepted Accounting Principles.

The basic principles of accounting and reporting ap-
plicable to state and local governments, including the
use of the modified accrual or accrual basis of ac-
counting, as appropriate, for measuring financial posi-
tion and operating results. These principles must be
observed to provide a basis of comparison for govern-
mental units.

General Fund: The fund into which the general (non-
earmarked) revenues of the municipality are depos-
ited and from which money is appropriated to pay the
general expenses of the municipality.

General Obligation (G.O.) Bonds*: Bonds for whose
payment, the full faith, and credit of the issuer has

been pledged. More commonly, but not necessarily,
general obligation bonds are payable from property
taxes and other general revenues.

Goal: A statement, in general terms, of a desired con-
dition, state of affairs, or situation. Goals are long-
term and not usually directly measurable without ob-
jectives. By establishing goals, the agencies can de-
fine their missions and then the methods for
achieving those goals.

Grant Year: The grant accounting period designated
by the requirements of a specific grant.

Headcount: The actual number of full-time or full-
time equivalent employees in a department at any
given time. The headcount will change from time to
time as employees are hired or terminated.

Interest: Compensation paid or to be paid for the use
of money, including interest payable at periodic inter-

vals or discount at the time a loan is made.

Interest Rate: The interest payable, expressed as a
percentage of the principal available for use during a
specified period of time.

Line Item: See Object Code.

Mayoral Reallocation: A transfer of appropriations of
up to $3 million that may be authorized by the Mayor
up to April 15 in a given fiscal year to relieve depart-
mental deficits or meet unanticipated financial prob-
lems.

Mission: A general overview of the purposes and major
activities of an agency or program.

Modified Accrual Basis: The accrual basis of account-
ing adapted to the governmental fund type, wherein
only current assets and current liabilities are gener-
ally reported on fund balance sheets and the fund op-
erating statements present financial flow information
(revenues and expenditures). Revenues are recog-
nized when they become both measurable and avail-
able to finance expenditures of the current period.
Expenditures are recognized when the related fund li-
ability is incurred except for a few specific excep-
tions: All governmental funds and expendable trust
funds are accounted for using the modified accrual
basis of accounting.

Object Code: An expenditure classification according
to the type of item purchased or service obtained, for
example, emergency employees, communications,
food supplies, and automotive equipment.

Objective: See Performance Objective.
Official Statement (O.S.): The municipal equivalent

of a prospectus - history, background of managers,

fund objectives, a financial statement, and other per-
tinent data related to the city’s financial condition.

Operating Budget: A legally adopted plan for antici-
pated expenditures for personnel, supplies, equip-
ment and services in one fiscal year.

Outcome: A quantifiable, reportable measure of the
intended performance objective; reflects the results
of a program in terms of impact on the level of need
or the problem being addressed.

Pavments-In-Lieu-of-Taxes: Income to replace the
loss of tax revenue resulting from property exempted
from taxation.

Performance Measure: An indicator of achievement.
Measures can be defined for identifying output, work
or service quality, efficiency, effectiveness, and pro-
ductivity.

Performance Objective: A statement of proposed ac-
complishments or attainments. Objectives are
short-term and measurable.

PLOS: Promised Level of Service, the estimate of the
outputs or outcomes being measured, based on the
resources provided by the budget.

Principal: The face amount of a bond, exclusive of
accrued interest.

Program: An organized group of activities, and the
resources to carry them out, that is directed toward
attaining objectives.

Program Evaluation: The process of comparing ac-
tual service levels achieved with promised results;
also refers to assessing, for the purpose of improving
the way a program operates.

Proposition 2 1/2: A statewide tax limitation initia-
tive petition limiting the property tax levy in cities
and towns in the Commonwealth to 2 1/2 percent of
the full and fair cash valuation of the taxable real
and personal property in that city or town. The stat-
ute also places an annual growth cap of 2 1/2 percent
on the increase in the property tax levy.

Quota: The planned number of positions that can be
filled by a department, subject to the availability of
funds. The quota can refer either to specific titles or
to the number of personnel in the entire department.
The quota of positions will change, from time to
time, by means of a budget amendment. The actual
number of personnel working in a department at any
given time may differ from the quota.

Reimbursement Grant: A federal or state grant that
is paid to the City once a project is completed and in-
spected for conformance to the grant contract. The

Deine) ee Meee: ees Sheree Ct ks. Nn

City must provide the full funding for the project
until the reimbursement is received.

Reserve Fund: An appropriation for contingencies.
Revenue: Income received by the City.

Salary Savings: For budget purposes, an amount
that will be saved from annual turnover of person-
nel in any department.

Special Appropriation: An authorization to expend
funds for a specific project not encompassed by
normal operating categories.

Special Revenue Fund: Used to account for the
proceeds of specific revenue sources (other than
special assessments, expendable trusts, or sources
for major capital projects) that are legally re-
stricted to expenditures for specific purposes. A
special revenue fund is accounted for in the same
manner as a General Fund.

STAT: Statutory accounting and reporting that is
adopted by a legislative body of a governmental en-
tity. The method of recording and reporting actual
expenditures and revenues within a plan of finan-
cial operations that establishes a basis for the con-
trol and evaluation of activities financed through
the General Fund. When the budget basis and ba-
sis of accounting are different, a governmental unit
usually maintains its records on a budget basis.

State Distributions: All City revenue flowing from
the state. Major categories include reimburse-
ment for loss of taxes, educational distributions
and reimbursements, direct education expendi-
tures, general government reimbursements, and
other distributions.

Sub-Object: A detailed breakdown of an Object
Code.

Sub-Program: A sub-program is defined discretely,
for purposes of management. Several related sub-
programs may make up a larger program.

Supplementary/Supplemental Appropriation: An
appropriation that is submitted to the City Council
after the operating budget has been approved.
Such appropriations must specify a revenue
source.

Tax Exempt Bonds: Bonds exempt from federal in-
come, state income, or state or local personal
property taxes.

Third Party Payment: Medical payments, usually
from an insurance Carrier to a health care provider
on behalf of an injured or infirm party.

i 0-1gS. Sh cdma 1a

Trust Funds: Funds held by the City in a fiduciary
role, to be expended for the purposes specified by the
donor.

Unliquidated Reserve: A fund established at year-end,
used to pay for goods and services received this year,
but not billed until next year.

Internet Archive Audio

Featured

Top

Images

Featured

Top

Software

Featured

Top

Texts

Featured

Top

Video

Featured

Top

Mobile Apps

Browser Extensions

Archive-It Subscription

Save Page Now

Full text of "Program budget. City of Boston and County of Suffolk"

See other formats